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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K/A-1
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) MAY 28, 1996
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AMRE, INC.
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(Exact Name of Registrant as Specified in Charter)
Delaware 1-9632 75-2041737
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
8585 N. Stemmons Freeway, South Tower, Dallas, TX 75247
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (214) 658-6300
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N/A
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(Former Name or Former Address, if Changed Since Last Report)
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All references herein to the Information Statement/Prospectus refer to
the Information Statement/Prospectus dated April 24, 1996 (the "Information
Statement Prospectus") of AMRE, Inc., a Delaware corporation ("AMRE"), and
Congressional Construction Corporation, a Virginia corporation
("Congressional") which is incorporated herein by reference to Exhibit 99.1.
With respect to each contract, agreement or other document referred to herein,
and filed with the Securities and Exchange Commission as an exhibit to this
report, reference is made to the exhibit for a more complete description of
the matter involved, and each such statement shall be deemed qualified in its
entirety by such reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(A) FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED
(1) The financial statements referenced under "Index to
Financial Statements -- Congressional Construction
Corporation" in the Information
Statement/Prospectus is incorporated herein by
reference and the financial statements of
Congressional Construction Corporation for the
required interim periods are filed as part of this
report.
(2) The manually signed accountant's report referenced
under "Index to Financial Statements --
Congressional Construction Corporation" in the
Information Statement/Prospectus is incorporated
herein by reference.
(B) PRO FORMA FINANCIAL INFORMATION
(1) Not applicable.
(C) EXHIBITS
**2.1 Agreement and Plan of Merger dated as of
December 30, 1995, among AMRE, Inc.,
AMRE-Congressional Acquisition, Inc., a
Delaware corporation, Congressional
Construction, a Virginia corporation,
together with all exhibits thereto
(incorporated by reference to the
Information Statement/Prospectus filed
herewith as an exhibit is incorporated
herein by reference).
*23.1 Consent of Deloitte & Touche LLP
**99.1 Information Statement/Prospectus of AMRE
and Congressional incorporated by
reference to AMRE's Registration Statement
on Form S-4, as amended (registration
number 333-02627), of which the
Information Statement/Prospectus is a
part.
**99.2 Press Release issued by AMRE on May 28,
1996.
* Filed herewith.
** Previously filed.
2
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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.
AMRE, INC.
Date: August 12, 1996 By: /s/ John H. Karnes, Jr.
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John H. Karnes, Jr.
Vice President, General Counsel
and Corporate Secretary
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INDEX TO CONGRESSIONAL CONSTRUCTION CORPORATION
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Balance Sheet at March 31, 1996 (Unaudited) and December 31, 1995
(Unaudited) ............................................................ 5
Statement of Operations for the Three Months Ended
March 31, 1996 and 1995 (Unaudited)..................................... 6
Statement of Cash Flows for the Three Months Ended
March 31, 1996 and 1995 (Unaudited)..................................... 7
Statement of Stockholders' Equity (Deficit) for the
Three Months Ended March 31, 1996 (Unaudited)........................... 8
Notes to Financial Statements (Unaudited)................................... 9
</TABLE>
4
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CONGRESSIONAL CONSTRUCTION CORPORATION
BALANCE SHEET
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
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<S> <C> <C>
Current assets:
Cash and cash equivalents .................................................... $ 67,696 $ 306,601
Contract receivables (net of allowance for doubtful accounts of $63,507) ..... 544,660 590,370
Costs incurred on uncompleted contracts ...................................... 104,604 161,818
Prepaid expenses and other current assets .................................... 87,590 98,293
----------- -----------
Total current assets ................................................... 804,550 1,157,082
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Property and equipment:
Autos ........................................................................ 15,131 15,131
Furniture and fixtures ....................................................... 464,044 369,791
Leasehold improvements ....................................................... 9,054 6,214
----------- -----------
488,229 391,136
Less: Accumulated depreciation and amortization ............................. (139,642) (121,940)
----------- -----------
348,587 269,196
Other assets ................................................................... 19,657 --
----------- -----------
$ 1,172,794 $ 1,426,278
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current portion of notes payable ............................................. $ 683,392 $ 624,320
Current portion of capital lease obligation .................................. 49,420 37,587
Accounts payable ............................................................. 549,256 590,739
Customer deposits ............................................................ 167,411 290,043
Accrued liabilities .......................................................... 751,631 422,104
----------- -----------
Total current liabilities .............................................. 2,201,110 1,964,793
Notes payable .................................................................. 4,660,289 4,788,145
Capital lease obligation ....................................................... 74,427 20,100
Stockholders' equity (deficit):
Convertible preferred stock, no par value; 700 shares authorized,
issued, and outstanding (aggregate liquidation value of $7,746,900,
at March 31, 1996) ..................................................... 500 500
Common stock, $1 par value, 1,000 shares authorized and
issued; 499 shares outstanding ............................................. 1,000 1,000
Retained deficit ............................................................. (562,833) (27,556)
Unearned ESOP compensation ................................................... (5,201,199) (5,320,204)
Less: 501 shares of common stock in treasury ................................ (500) (500)
----------- -----------
Total stockholders' equity ............................................. (5,763,032) (5,346,760)
----------- -----------
$ 1,172,794 $ 1,426,278
=========== ===========
</TABLE>
See Notes to Financial Statements.
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CONGRESSIONAL CONSTRUCTION CORPORATION
STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
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MARCH 31, 1996 MARCH 31, 1995
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<S> <C> <C>
Contract revenues ................................. $ 2,639,566 $ 3,278,687
Cost of contracts completed:
Materials and labor ............................. 1,038,367 1,236,439
Selling costs ................................... 411,074 526,655
License fees .................................... 282,242 443,188
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Gross profit ...................................... 907,883 1,072,405
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Operating expenses:
Advertising ..................................... 218,847 334,945
Compensation costs .............................. 692,405 712,121
Other general and administrative ................ 405,732 327,983
Rent ............................................ 50,495 34,392
Depreciation and amortization ................... 17,702 11,993
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1,385,181 1,421,434
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Operating loss .................................... (477,298) (349,029)
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Other income (expense):
Interest income ................................. 3,219 12,294
Other income .................................... 39,586 (7,179)
Interest expense ................................ (100,784) (112,452)
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(57,979) (107,337)
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Loss before income taxes .......................... (535,277) (456,366)
Income tax expense (benefit) ...................... -- 41
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Net loss .......................................... $ (535,277) $ (456,407)
=========== ===========
Weighted average number of shares ................. 634 585
=========== ===========
Loss per common share and common equivalent share.. $ (844) $ (780)
=========== ===========
</TABLE>
See Notes to Financial Statements.
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CONGRESSIONAL CONSTRUCTION CORPORATION
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
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MARCH 31, 1996 MARCH 31, 1995
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ................................................ $ (535,277) $ (456,407)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization ......................... 17,702 11,993
Compensation expense for ESOP shares released ......... 119,005 145,616
Changes in operating assets and liabilities:
Contract receivables ................................ 45,710 (1,778,078)
Costs incurred on uncompleted contracts ............. 57,214 (16,966)
Prepaid expenses and other current assets ........... 10,703 (17,392)
Other assets ........................................ (19,657) --
Accounts payable .................................... (41,482) (71,788)
Accrued liabilities ................................. 205,842 1,805,907
Income taxes payable ................................ 1,052 (25,639)
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Net cash used in operating activities ................... (139,188) (402,754)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment ................... (14,353) (55,257)
Purchases of leasehold improvements ................... (2,840) --
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Net cash used in investing activities ................... (17,193) (55,257)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of capital lease obligation ................ (13,740) (5,183)
Repayments of notes payable ........................... (68,784) (147,356)
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Net cash used in financing activities ................... (82,524) (152,539)
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Net decrease in cash and cash equivalents ............... (238,905) (610,550)
Cash and cash equivalents, beginning of period .......... 350,493 961,043
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Cash and cash equivalents, end of period ................ $ 111,588 $ 350,493
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SUPPLEMENTAL CASH FLOW INFORMATION:
Non-cash investing and financing activities:
Capital lease obligation for purchase of equipment.. $ 79,900 $ --
=========== ===========
Interest paid ........................................ $ 68,411 $ 112,464
=========== ===========
Income taxes paid .................................... $ 1,052 $ 25,680
=========== ===========
</TABLE>
See Notes to Financial Statements.
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CONGRESSIONAL CONSTRUCTION CORPORATION
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
(Unaudited)
<TABLE>
<CAPTION>
CONVERTIBLE UNEARNED
PREFERRED COMMON RETAINED ESOP TREASURY
STOCK STOCK EARNINGS Compensation STOCK TOTAL
----------- ----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1995... 500 1,000 $ (27,556) $(5,320,204) (500) $(5,346,760)
Compensation expense for
ESOP shares released -- -- -- 119,005 -- 119,005
Net loss .................. -- -- (535,277) -- -- (535,277)
Balance, March 31, 1996 ..... 500 1,000 $ (562,833) $(5,201,199) (500) $(5,763,032)
=========== =========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
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CONGRESSIONAL CONSTRUCTION CORPORATION
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE 1 - UNAUDITED INTERIM FINANCIAL STATEMENTS
Basis of presentation - The accompanying interim financial statements of
Congressional Construction Corporation ("Congressional") as of March 31, 1996
and for the quarterly periods ended March 31, 1996 and March 31, 1995 are
unaudited. The balance sheet as of December 31, 1995 (unaudited) has been
derived from Congressional's December 31, 1995 financial statements. In the
opinion of management, these financial statements include all adjustments,
consisting only of normal recurring adjustments, necessary for a fair
presentation of the financial position, results of operations and cash flows.
These financial statements should be read in conjunction with the Congressional
December 31, 1995 financial statements and related notes which were included in
AMRE's registration on Form S-4 (No. 333- 02627) filed with the Commission on
April 8, 1996 as amended by Amendment No. 1 thereto filed with the Commission on
April 24, 1996.
On December 30, 1995, Congressional and AMRE, Inc. signed an Agreement and
Plan of Merger which would result in Congressional becoming a wholly-owned
subsidiary of AMRE, Inc. On May 28, 1996, Congressional consummated the merger
and the Congressional stockholders received 899,998 shares of AMRE Common
Stock in exchange for all of the Congressional common and convertible
preferred stock.
NOTE 2 - EMPLOYEE STOCK OWNERSHIP PLAN
Effective June 30, 1993, Congressional established an Employee Stock
Ownership Plan (ESOP) covering its employees. Congressional borrowed $7
million from a bank ("ESOP Bank Loan") and then lent that sum to the ESOP
("ESOP Loan"). The ESOP used the proceeds of the ESOP Loan to purchase 700
shares of convertible preferred stock from one of Congressional's
stockholders.
The stock held by the ESOP is released for allocation to participant's
accounts as principal is paid on the ESOP Loan. During the periods ended March
31, 1996 and March 31, 1995, Congressional made contributions to the ESOP of
$67,937 and $145,616 respectively, that was used to pay principal on the ESOP
Bank Loan. Gross compensation expense was approximately $119,000 and $146,000
for the periods ended March 31, 1996 and March 31, 1995.
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EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NO. DESCRIPTION
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<S> <C>
**2.1 Agreement and Plan of Merger dated as of December 30, 1995,
among AMRE, Inc., AMRE-Congressional Acquisition, Inc., a
Delaware corporation, Congressional Construction, a Virginia
corporation, together with all exhibits thereto
(incorporated by reference to the Information
Statement/Prospectus filed herewith as an exhibit is
incorporated herein by reference).
*23.1 Consent of Deloitte & Touche LLP
**99.1 Information Statement/Prospectus of AMRE and Congressional
incorporated by reference to AMRE's Registration Statement
on Form S-4, as amended (registration number 333-02627), of
which the Information Statement/Prospectus is a part.
**99.2 Press Release issued by AMRE on May 28, 1996.
</TABLE>
* Filed herewith.
** Previously filed.
10
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EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Form 8-K/A-1 of AMRE, Inc.
of our report dated March 4, 1996 (relating to the financial statements of
Congressional Construction Corporation not presented separately herein)
appearing in Registration Statement No. 333-02627 on Form S-4 filed by AMRE,
Inc. on April 18, 1996.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Washington, D.C.
August 9, 1996
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