<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. ____)*
RETIREMENT CARE ASSOCIATES, INC.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.0001 par value
- --------------------------------------------------------------------------------
(Title of Class of Securities)
76129C307
----------------------------------------------------
(CUSIP Number)
Robert A. Waldman
10670 North Central Expressway, Suite 600
Dallas, Texas (214) 692-4700
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
April 8, 1998
----------------------------------------------------
(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 Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box.
NOTE: Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. See Section 240.13d-7(b)
for other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
(Continued on the following pages)
<PAGE> 2
<TABLE>
<CAPTION>
CUSIP No. 76129C307 SCHEDULE 13D Page 2 of 7 Pages
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
American Realty Trust, Inc.
54-0697989
- -------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- -------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC/OO
- -------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
- -------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Georgia
- -------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 391,500
BENEFICIALLY --------------------------------------------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING -0-
PERSON --------------------------------------------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
391,500
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- -------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
391,500
- -------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
- -------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.7%
- -------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
CUSIP No. 76129C307 SCHEDULE 13D Page 3 of 7 Pages
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Basic Capital Management, Inc.
75-23322719
- -------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- -------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC/OO
- -------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
- -------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
- -------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 385,800
SHARES --------------------------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH -0-
REPORTING --------------------------------------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
385,800
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- -------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
385,800
- -------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [X]
- -------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.6%
- -------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
CUSIP No. 76129C307 SCHEDULE 13D Page 4 of 7 Pages
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Davister Corp.
75-2338496
- -------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- -------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC/OO
- -------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
- -------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
- -------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 223,700
SHARES --------------------------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH -0-
REPORTING --------------------------------------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
223,700
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- -------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
223,700
- -------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
- -------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
- -------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
CUSIP No. 76129C307 SCHEDULE 13D Page 5 of 7 Pages
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
International Health Products, Inc.
75-2302531
- -------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- -------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC/OO
- -------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
- -------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
- -------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 40,000
SHARES --------------------------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH -0-
REPORTING --------------------------------------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
40,000
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- -------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
40,000
- -------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
- -------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.3%
- -------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
CUSIP No. 76129C307 SCHEDULE 13D Page 6 of 7 Pages
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Institutional Capital Corporation
75-2442090
- -------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- -------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC/OO
- -------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
- -------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
- -------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 15,000
SHARES -------------------------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH -0-
REPORTING -------------------------------------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
15,000
-------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- -------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
15,000
- -------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
- -------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.1%
- -------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
CUSIP No. 76129C307 SCHEDULE 13D Page 7 of 7 Pages
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Gene E. Phillips
- -------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
- -------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
- -------------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) OR 2(e) [ ]
- -------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
- -------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
SHARES --------------------------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
EACH -0-
REPORTING --------------------------------------------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH
-0-
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- -------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
-0-
- -------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [X]
- -------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
-0-
- -------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 8
RETIREMENT CARE ASSOCIATES, INC.
CUSIP NO. 761 29C 307
ITEM 1. SECURITY AND ISSUER
This statement relates to the Common Stock, $.0001 par value (the
"Shares"), of Retirement Care Associates, Inc. (the "Company"). The principal
executive offices of the Company are located at 6000 Lake Forrest Drive, Suite
200, Atlanta, Georgia 30828.
ITEM 2. IDENTITY AND BACKGROUND
This statement is being filed on behalf of American Realty Trust, Inc.
("ART"), Basic Capital Management, Inc. ("BCM"), International Health Products,
Inc. ("IHPI"), Davister Corp. ("Davister"), Institutional Capital Corporation
("ICC"), and Gene E. Phillips (collectively, the "Reporting Persons").
BCM owns approximately 49.1% of the outstanding securities of ART and
serves as the advisor to ART. BCM is beneficially owned by a trust established
for the benefit of the children of Gene E. Phillips (the "May Trust"), who
formerly served as Chief Executive Officer (1989 - 1992) and Chairman of the
Board of Directors (1989) of BCM, and as Chief Executive Officer (1982 - 1991)
and Chairman of the Board of Directors (1984 - 1992) of ART. Although Mr.
Phillips no longer serves as an officer or director of BCM or ART, he continues
to have substantial contact with the management of BCM and has a significant
influence on its advisory services and investment decisions as a representative
of the May Trust. In addition, BCM's Securities Manager, who is responsible for
the purchase and disposition of securities for BCM, is also an officer of ART
and manages investments in securities for ART as well as BCM.
IHPI is owned by a separate trust established for the benefit of the
wife and children of Gene E. Phillips (the "Martin Trust"). IHPI is managed by
F. Terry Shumate, who also manages several other private entities owned by Mr.
Phillips or his family trusts. Mr. Shumate consults on a regular basis with Mr.
Phillips and/or the Securities Manager for BCM regarding investments in
securities made by IHPI.
Davister and ICC are each owned by different parties but share the same
principal place of business and the same principal office as IHPI. Davister and
ICC are managed by the same personnel who manage IHPI and other private
companies
<PAGE> 9
owned by Gene E. Phillips or his family trusts. These personnel consult on a
regular basis with Mr. Phillips and/or the Securities Manager for BCM regarding
investments in securities by Davister and ICC.
(I) ART is a real estate investment company organized and existing as a
Georgia corporation. ART's principal business activities include investments in
real estate and in other business ventures. The principal place of business and
principal office of ART are located at 10670 North Central Expressway, Suite
300, Dallas, Texas 75231.
The following is a list of each executive officer and director of ART:
<TABLE>
<CAPTION>
Name Positions
- ---- ---------
<S> <C>
Oscar W. Cashwell Director
Al Gonzalez Director
Cliff Harris Director
Roy E. Bode Director
Karl L. Blaha Director/President
Thomas A. Holland Executive Vice President and
Chief Financial Officer
Bruce A. Endendyk Executive Vice President
Randall M. Paulson Executive Vice President
Robert A. Waldman Senior Vice President,
Secretary and General
Counsel
Drew D. Potera Vice President and Treasurer
</TABLE>
Mr. Cashwell's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Cashwell is a real estate consultant for
BCM. Mr. Cashwell is a citizen of the United States of America.
Mr. Gonzalez's business address is 4455 Alpha Road, Building 2, Dallas,
Texas 75244. Mr. Gonzalez's present
2
<PAGE> 10
principal occupation is President of AGE Refining, Inc. Mr. Gonzalez is a
citizen of the United States of America.
Mr. Harris's business address is 2838 Woodside Street, Dallas, Texas
75204. Mr. Harris's present principal occupation is President of Energy Transfer
Group, L.L.C. Mr. Harris is a citizen of the United States of America.
Mr. Bode's business address is 2435 E. FM 879, Palmer, Texas 75152. Mr.
Bode's present principal occupation is Vice President for Public Affairs at
University of Texas Southwestern Medical Center at Dallas. Mr. Bode is a citizen
of the United States of America.
Mr. Blaha's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Blaha's present principal occupation is Executive
Vice President - Commercial Asset Management of BCM. Mr. Blaha is a citizen of
the United States of America.
Mr. Holland's business address is 10670 North Central Expressway, Suite
600 Dallas, Texas 75231. Mr. Holland's present principal occupation is Executive
Vice President and Chief Financial Officer of BCM. Mr. Holland is a citizen of
the United States of America.
Mr. Endendyk's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Endendyk's present principal occupation is
Executive Vice President of BCM. Mr. Endendyk is a citizen of the United States
of America.
Mr. Paulson's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Paulson's present principal occupation is
President of BCM. Mr. Paulson is a citizen of the United States of America.
Mr. Waldman's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Waldman's present principal occupation is Senior
Vice President, Secretary and General Counsel of BCM. Mr. Waldman is a citizen
of the United States of America.
Mr. Potera's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Potera's present principal occupation is Vice
President and Treasurer of BCM. Mr. Potera is a citizen of the United States of
America.
3
<PAGE> 11
(II) BCM is a corporation organized and existing under the laws of the
State of Nevada. BCM's principal business activity is the provision of advisory
services for real estate investment trusts. Its principal place of business and
principal office are located at 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231.
BCM is owned by Realty Advisors, Inc., a Nevada corporation. Realty
Advisors, Inc. is owned by a trust established for the benefit of the children
of Gene E. Phillips. The directors and executive officers of BCM are as follows:
<TABLE>
<CAPTION>
Name Positions
- ---- ---------
<S> <C>
Ryan T. Phillips Director
Mickey Ned Phillips Director
Randall M. Paulson President
Thomas A. Holland Executive Vice President and
Chief Financial Officer
Clifford C. Towns, Jr. Executive Vice President -
Finance
Karl L. Blaha Executive Vice President -
Commercial Asset Management
Bruce A. Endendyk Executive Vice President
A. Cal Rossi, Jr. Executive Vice President
Cooper B. Stuart Executive Vice President
Dan S. Allred Senior Vice President - Land
Development
Robert A. Waldman Senior Vice President, General
Counsel and Secretary
Drew D. Potera Vice President, Treasurer and
Securities Manager
</TABLE>
Information with respect to Messrs. Paulson, Holland, Blaha, Endendyk,
Waldman and Potera is disclosed in (I) above.
4
<PAGE> 12
Mr. R. Phillips's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Phillips's present principal occupation is
an independent real estate investor. Mr. Phillips is a citizen of the United
States of America.
Mr. M. Phillips's business address is 264 Rolling Hills Circle,
Gaffney, South Carolina 29340. Mr. Phillips's present principal occupation is
owner of Phillips Remodeling Co. Mr. Phillips is a citizen of the United States
of America.
Mr. Towns's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Towns's present principal occupation is Executive
Vice President of BCM. Mr. Towns is a citizen of the United States of America.
Mr. Rossi's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Rossi's present principal occupation is Executive
Vice President of BCM. Mr. Rossi is a citizen of the United States of America.
Mr. Stuart's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Stuart's present principal occupation is Executive
Vice President of BCM. Mr. Stuart is a citizen of the United States of America.
Mr. Allred's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Allred's present principal occupation is Senior
Vice President - Land Development of BCM. Mr. Allred is a citizen of the United
States of America.
(III) IHPI is a corporation organized and existing under the laws of
the State of Nevada. IHPI's principal business activity is investments in real
estate and marketable securities. IHPI's principal place of business and its
principal office are located at 10670 North Central Expressway, Suite 410,
Dallas, Texas 75231.
IHPI is owned by the Martin Trust, which was established for the
benefit of the wife and children of Gene E. Phillips. The directors and
executive officers of IHPI are as follows:
<TABLE>
<CAPTION>
Name Positions
- ---- ---------
<S> <C>
F. Terry Shumate Director, President and Treasurer
Mary K. Willett Director and Secretary
</TABLE>
5
<PAGE> 13
Mr. Shumate's business address is 10670 North Central Expressway, Suite
410, Dallas, Texas 75231. Mr. Shumate's present principal occupation is Vice
President of Syntek West, Inc., a private company which is wholly owned by Mr.
Gene Phillips. Mr. Shumate is a citizen of the United States of America.
Ms. Willett's business address is 10670 North Central Expressway, Suite
410, Dallas, Texas 75231. Ms. Willett's present principal occupation is
Controller of Syntek West, Inc. and other private companies owned by Mr. Gene
Phillips or his family trusts. Ms. Willett is a citizen of the United States of
America.
(IV) Davister is a corporation organized and existing under the laws of
the State of Nevada. Davister's principal business activity is investments in
real estate and marketable securities, and its day-to-day operations are managed
by F. Terry Shumate. Its principal place of business and its principal office
are located at 10670 North Central Expressway, Suite 410, Dallas, Texas 75231.
Davister is owned by a group of eleven individuals. F. Terry Shumate
owns 18% of Davister and is the largest shareholder of the company. The
directors and executive officers of Davister are as follows:
<TABLE>
<CAPTION>
Name Positions
- ---- ---------
<S> <C>
Ronald F. Akin Director, President, Secretary and
Treasurer
Ronald F. Bruce Director
</TABLE>
Mr. Akin's business address is 10670 North Central Expressway, Suite
405, Dallas, Texas 75231. Mr. Akin's present principal occupation is President
of Sunridge Management Group, Inc., a company that provides real estate
management services to the various real estate entities advised by BCM as well
as other unrelated entities. Mr. Akin is a citizen of the United States of
America.
Mr. Bruce's business address is 10670 North Central Expressway, Suite
400, Dallas, Texas 75231. Mr. Bruce's present principal occupation is President
of Grapat Group Incorporated, a company that provides real estate management
services to the real estate entities advised by BCM as well as
6
<PAGE> 14
other unrelated entities. Mr. Bruce is a citizen of the United States of
America.
(V) ICC is a corporation organized and existing under the laws of the
State of Nevada. ICC's principal business activity is investments in real estate
and marketable securities, and its day-to-day operations are managed by F. Terry
Shumate. ICC's principal place of business and its principal office are located
at 10670 North Central Expressway, Suite 411, Dallas, Texas 75231.
ICC is owned by Electrical Networks, Inc. and Starr Investments. The
directors and executive officers of ICC are as follows:
<TABLE>
<CAPTION>
Name Positions
- ---- ---------
<S> <C>
J.T. Tackett Director, Chairman and Chief
Executive Officer
E. Wayne Starr Director, President and Treasurer
</TABLE>
Mr. Tackett's business address is Electrical Networks, Inc., 2521
Weaver Street, Suite A, Fort Worth, Texas 76117. Mr. Tackett's present principal
occupation is electrical contractor. Mr. Tackett is a citizen of the United
States of America.
Mr. Starr's business address is Century 21 -- Starr Associates, Inc.,
418 East Cooper Avenue, Suite 202, Aspen, Colorado 81611. Mr. Starr's present
principal occupation is real estate investments. Mr. Starr is a citizen of the
United States of America.
(VI) Gene E. Phillips's principal business address is 10670 North
Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Phillips's present
principal occupation is investments in real estate. Mr. Phillips is a citizen of
the United States of America.
During the last five (5) years, (i) none of the persons enumerated in
(I) through (VI) above has been convicted in a criminal proceeding (excluding
traffic violations and similar misdemeanors) and (ii) none of such persons was a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was
7
<PAGE> 15
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 any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The aggregate amount of funds used by ART to purchase Shares of the
Company is $4,314,036. The sources of such funds are from ART's working capital
and margin loans extended by the broker-dealers disclosed under Item 6 below.
The aggregate amount of funds used by BCM to purchase Shares of the
Company is $3,982,538. The sources of such funds are from BCM's working capital
and margin loans extended by the broker-dealers disclosed under Item 6 below.
The aggregate amount of funds used by Davister to purchase Shares of
the Company is $2,530,362. The sources of such funds are from Davister's working
capital and margin loans extended by the broker-dealers disclosed under Item 6
below.
The aggregate amount of funds used by ICC to purchase Shares of the
Company is $161,875. The sources of such funds are from ICC's working capital
and margin loans extended by the broker-dealers disclosed under Item 6 below.
The aggregate amount of funds used by IHPI to purchase Shares of the
Company is $406,675. The sources of such funds are from IHPI's working capital
and margin loans extended by the broker-dealers disclosed under Item 6 below.
ITEM 4. PURPOSE OF TRANSACTION
Each of the Reporting Persons owning Shares acquired the Shares
described in Item 5 below in order to obtain a significant investment position
in the Company. The Reporting Persons have no present plans or proposals to
acquire additional Shares of the Company or dispose of any or all of the Shares
now owned by the Reporting Persons, but each of the Reporting Persons reserves
the right to acquire additional Shares of the Company or dispose of any or all
of the Shares of the Company now owned based on such Reporting Person's
evaluation of the Company's business prospects and financial condition, the
market for Shares of the Company, the availability of other investment
opportunities, general
8
<PAGE> 16
economic conditions, and other future developments. Any such further purchase or
disposition of Shares of the Company may be made in the open market, in
privately negotiated transactions, or otherwise.
None of the Reporting Persons has any present plan or proposal which
relates to or would result in:
(a) an extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Company or any of its
subsidiaries;
(b) a sale or transfer of a material amount of assets of the Company or
any of its subsidiaries;
(c) any change in the present Board of Directors or management of the
Company, including any plans or proposals to change the number or term
of directors or to fill any existing vacancies on the Board;
(d) any material change in the present capitalization or dividend
policy of the Company;
(e) any other material change in the Company's business or corporate
structure;
(f) changes in the Company's charter, bylaws or instruments
corresponding thereto or other actions which might impede the
acquisition of control of the Company by any person;
(g) Shares of the Company being delisted from the New York Stock
Exchange;
(h) a class of equity securities of the Company becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the
Securities Exchange Act of 1934; or
(i) any action similar to any of those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) Share Ownership
9
<PAGE> 17
The following tables show the Shares owned directly and beneficially by
the Reporting Persons on the date of this statement:
<TABLE>
<CAPTION>
Shares Owned Directly
---------------------
Number Percent of
Name of Shares Class (1)
- ---- --------- ---------
<S> <C> <C>
ART 391,500 2.7%
BCM 385,700 2.6%
IHPI 40,000 .3%
Davister 223,700 1.5%
ICC 15,000 .1%
Total 1,056,000 7.2%
<CAPTION>
Shares Owned Beneficially
-------------------------
Number Percent of
Name of Shares Class (1)
- ---- --------- ---------
<S> <C> <C>
ART 391,500 2.7%
BCM (2) 777,200 5.3%
IHPI 40,000 .3%
Davister 223,700 1.5%
ICC 15,000 .1%
Gene E. Phillips (3) 1,056,000 7.2%
Total Shares
beneficially
owned by Reporting
Persons 1,056,000 7.2%
<FN>
(1) Percentage calculations are based upon 14,749,441 Shares outstanding on
September 30, 1997.
(2) May be deemed to be a beneficial owner of the Shares held directly by ART by
virtue of the relationship to ART described in Item 2. BCM does not affirm
beneficial ownership of such Shares.
(3) May be deemed to be a beneficial owner of the Shares held by ART, BCM, IHPI,
Davister, and ICC by reason of the relationships with those entities described
in Item 2. Mr. Phillips does not affirm beneficial ownership of any of such
Shares.
</TABLE>
(b) Voting and Disposition Power
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Each of the directors of ART shares voting and disposition power over
all of the Shares owned by ART. Each of the directors of BCM shares voting and
disposition power over all of the Shares held by BCM.
Gene E. Phillips, as a representative of the May Trust, has a
significant influence on decisions relating to the purchase and disposition of
securities made by BCM and ART. Drew D. Potera, who manages investments in
securities made by BCM as the Securities Manager for that entity, also manages
investments in securities made by ART as an officer of ART. Mr. Potera's
activities at BCM and ART are subject to the oversight of the directors of each
of those companies. The directors of BCM and ART have not agreed that these
companies will act in concert with each other or with any other Reporting Person
with respect to the acquisition or disposition of Shares of the Company.
Each of the directors of IHPI shares voting and disposition power over
all of the Shares held by IHPI. Each of the directors of Davister shares voting
and disposition power over all of the Shares held by Davister. Each of the
directors of ICC shares voting and disposition power over all of the Shares
owned by ICC.
F. Terry Shumate, who is a director of IHPI and makes investments for
that entity, also makes investments on behalf of Davister and ICC. Mr. Shumate
consults on a regular basis with Gene E. Phillips and/or the Securities Manager
for BCM with respect to the purchase and disposition of marketable securities on
behalf of IHPI, Davister and ICC. The directors of IHPI, Davister and ICC have
not agreed that IHPI, Davister and ICC will act in concert with each other or
with any other Reporting Person with respect to the acquisition or disposition
of Shares of the Company.
(c) Transactions in Securities
No transactions in the Shares were effected by the Reporting Persons
during the past 60 days.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE
ISSUER.
ART has pledged 391,500 Shares of the Company to secure margin debt at
the following firms in the following amounts: 2,000 Shares to Arnold Securities;
190,500 Shares to Bear
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Stearns & Co., Inc.; 5,000 Shares to Bidwell & Co.; 5,000 Shares to Cowen & Co.;
5,000 Shares to Deutsche Morgan Grenfell; 5,000 Shares to Dain Bosworth; 55,000
Shares to Dean Witter; 10,000 Shares to First Southwest; 5,000 Shares to Legg
Mason Wood Walker; 19,000 Shares to May Financial; 10,000 Shares to McDonald &
Company; 10,000 Shares to Morgan Keegan & Company, Inc.; 10,000 Shares to Morgan
Keegan (Tx); 20,000 Shares to Rauscher Pierce Refsnes, Inc.; 5,000 Shares to
Regions Investment Company; 15,000 Shares to Southland Securities Corporation;
10,000 Shares to Principal Financial Securities, Inc.; and 10,000 Shares to
Wedbush Morgan Securities.
BCM has pledged 385,700 Shares of the Company to secure margin debt at
the following firms in the following amounts: 80,500 Shares to Bear Stearns &
Co., Inc.; 5,000 Shares to Brown & Co.; 15,000 Shares to Deutsche Morgan
Grenfell; 15,000 Shares to Dean Witter; 25,000 Shares to First Southwest; 4,000
Shares to Gruntal & Co.; 7,000 Shares to Hambrecht & Quist LLC; 5,000 Shares to
J. C. Bradford & Co.; 18,000 Shares to Legg Mason Wood Walker; 5,000 Shares to
May Financial; 10,000 Shares to McDonald & Company; 20,000 Shares to Morgan
Keegan (Tx-2); 45,000 Shares to Morgan Keegan (Tx); 49,000 Shares to Rauscher
Pierce Refsnes, Inc.; 17,000 Shares to Raymond James Associates, Inc.; 10,200
Shares to Southland Securities Corporation; 30,000 Shares to Principal Financial
Securities, Inc.; 5,000 Shares to Wachovia Brokerage; 10,000 Shares to Wedbush
Morgan Securities; and 10,000 Shares to Wheat First Butcher Singer.
IHPI has pledged 40,000 Shares of the Company to secure margin debt at
the following firms in the following amounts: 5,000 Shares to BA Investment
Services, Inc.; 5,000 Shares to Cutter & Company, Inc.; 10,000 Shares to Everen
Securities; 5,000 Shares to Legg Mason Wood Walker; 10,000 Shares to McDonald &
Company; and 5,000 Shares to Principal Financial Securities, Inc.
Davister has pledged 223,700 Shares of the Company to secure margin
debt at the following firms in the following amounts: 62,500 Shares to Bear
Stearns & Co., Inc.; 66,200 Shares to Rauscher Pierce Refsnes, Inc.; and 95,000
Shares to Southland Securities Corporation.
ICC has pledged 15,000 Shares of the Company to secure margin debt at
the following firms in the following amounts: 5,000 Shares to Hambrecht & Quist
LLC; and 10,000 Shares to Rauscher Pierce Refsnes, Inc.
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ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
None.
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SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: April 8, 1998
AMERICAN REALTY TRUST, INC.
By: /s/ Karl L. Blaha
-------------------------------------
Karl L. Blaha
President
BASIC CAPITAL MANAGEMENT, INC.
By: /s/ Drew D. Potera
-------------------------------------
Drew D. Potera
Vice President and Treasurer
DAVISTER CORP.
By: /s/ Ronald F. Akin
-------------------------------------
Ronald F. Akin
President
INSTITUTIONAL CAPITAL CORPORATION
By: /s/ E. Wayne Starr
-------------------------------------
E. Wayne Starr
President
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INTERNATIONAL HEALTH PRODUCTS, INC.
By: /s/ F. Terry Shumate
-------------------------------------
F. Terry Shumate
President
GENE E. PHILLIPS
/s/ Gene E. Phillips
-------------------------------------
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