SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-KA/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) July 23, 1996
FRONTEER FINANCIAL HOLDINGS, LTD.
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(Exact name of registrant as specified in its charter)
Colorado 0-17637 45-0411501
- -------------- ------------------ ------------------
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation) Identification No.)
1700 Lincoln Street, 32nd Floor, Denver, Colorado 80203
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (303) 860-1700
<PAGE>
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial statements of business acquired.
Not applicable
(b) Pro forma financial information.
The following unaudited pro forma condensed consolidated
financial statements are filed with this report:
Pro forma condensed consolidated balance sheet as of June 30,
1996
Pro forma condensed consolidated statement of operations:
Nine months ended September 30, 1995
Nine months ended June 30, 1996
The pro forma condensed consolidated balance sheet of
Fronteer Financial Holdings, Ltd. (Fronteer) as of June 30,
1996 reflects the financial position of Fronteer after
giving effect to the sale of the Clearing Operation
discussed in Item 2 of Fronteer's Current Report on Form 8-K
dated July 23, 1996, as originally filed, and assumes the
sale took place on June 30, 1996. The pro forma condensed
consolidated statements of operations for the nine months
ended September 30, 1995 and the nine months ended June 30,
1996 assume that the sale occurred on January 1, 1995 and
are based on the operations of Fronteer for the nine months
ended September 30, 1995 and the nine months ended June 30,
1996.
2
<PAGE>
The unaudited pro forma condensed consolidated financial
statements have been prepared by Fronteer based upon
assumptions deemed proper by it. The unaudited pro forma
condensed consolidated financial statements presented herein
are shown for illustrative purposes only and are not
necessarily indicative of the future financial position or
future results of operations of Fronteer or of the financial
position or results of operations of Fronteer that would
have actually occurred had the transaction been in effect as
of the date or for the periods presented. In addition, it
should be noted that Fronteer's financial statements will
reflect the disposition only from the sale date.
The unaudited pro forma condensed consolidated financial
statements should be read in conjunction with the historical
financial statements and related notes of Fronteer.
(c) Exhibits.
Exhibit 10.1 Agreement for Sale and Purchase of Certain of the
Business and Assets of RAF Financial Corporation
dated January 29, 1996 by and among Fronteer
Directory Company, Inc., RAF Financial
Corporation and MultiSource Services, Inc.
(incorporated by reference to Exhibit 10.1 to
Registrant's Current Report on Form 8-K dated
July 23, 1996, as originally filed.)
Exhibit 10.2 Stock Subscription Agreement dated January 29,
1996 by and among Fronteer Directory Company.,
Oppenheimer Funds, Inc. and MultiSource Services,
Inc. (incorporated by reference to Exhibit 10.2
to Registrant's Current Report on Form 8-K dated
July 23, 1996, as originally filed.)
3
<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.
Date: March 24, 1997
FRONTEER FINANCIAL HOLDINGS, LTD.
By: /s/ R.A. Fitzner, Jr.
------------------------------
R.A. Fitzner, Jr.
Chairman of the Board
4
<PAGE>
<TABLE>
<CAPTION>
Pro Forma Financial Information
Fronteer Financial Holdings, Ltd. and Subsidiaries
Pro Forma Condensed Consolidated Balance Sheet as of June 30, 1996
Pro forma
adjustments
-----------
Clearing
Historical Operation(A) Other(B) Pro forma
---------- ----------- --------- ---------
<S> <C> <C> <C> <C>
Cash and cash equivalents ................... $ 1,265,307 930,887 3,694,576 4,028,996
Accounts receivable ......................... 13,773,211 10,129,782 -- 3,643,429
Securities owned, at market value ........... 2,248,350 -- -- 2,248,350
Other current assets ........................ 1,768,112 423,524 -- 1,344,588
----------- ---------- ---------- ----------
Total current assets ..................... 19,054,980 11,484,193 3,694,576 11,265,363
Property, furniture and equipment ........... 5,114,828 783,010 -- 4,331,818
Accumulated depreciation .................... 2,913,629 715,598 -- 2,198,031
----------- ---------- ---------- ----------
Net property, furniture and equipment .... 2,201,199 67,412 -- 2,133,787
Directory publishing rights and other ....... 4,962,133 -- -- 4,962,133
Accumulated amortization .................... 458,925 -- -- 458,925
----------- ---------- ---------- ----------
Net directory publishing rights and other 4,503,208 -- -- 4,503,208
----------- ---------- ---------- ----------
Total assets ............................. $25,759,387 11,551,605 3,694,576 17,902,358
=========== ========== ========== ==========
Payables and accrued expenses ............... $12,061,241 10,857,029 -- 1,204,212
Current portion of long-term debt ........... 894,441 -- -- 894,441
Notes payable to related parties ............ 467,900 -- -- 467,900
Other current liabilities ................... 1,297,848 -- -- 1,297,848
----------- ---------- ---------- ----------
Total current liabilities ................ 14,721,430 10,857,029 -- 3,864,401
Long-term debt, net of current portion ...... 904,051 -- 1,500,000 2,404,051
Deferred rent concessions ................... 1,788,517 -- -- 1,788,517
Deferred income taxes ....................... 1,085,590 -- -- 1,085,590
----------- ---------- ---------- ----------
Total liabilities ........................ 18,499,588 10,857,029 1,500,000 9,142,559
Minority interest in subsidiary ............. 205,356 -- -- 205,356
Total stockholders' equity ............... 7,054,443 694,576 2,194,576 8,554,443
----------- ---------- ---------- ----------
Total liabilities and stockholders' equity $25,759,387 11,551,605 3,694,576 17,902,358
=========== ========== ========== ==========
</TABLE>
(A) Represents elimination of historical balances of the Clearing Operation.
(B) Represents consideration received of $3,000,000 plus net book value of the
Clearing Operation. Of the total consideration received, $1,500,000 is in
the form of a forgivable loan.
F-1
<PAGE>
<TABLE>
<CAPTION>
Pro Forma Financial Information
Fronteer Financial Holdings, Ltd. and Subsidiaries
Pro Forma Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 1995
Pro forma
adjustments
-----------
Clearing
Historical Operation(A) Other(B) Pro forma
---------- ----------- --------- ---------
<S> <C> <C> <C> <C>
Revenue ................................ $ 17,169,754 153,080 -- 17,016,674
Cost of sales and operating expenses:
Cost of sales ....................... 11,634,402 -- 11,634,402
General and administrative .......... 6,958,217 1,241,138 264,418 5,981,497
Depreciation and amortization ....... 564,411 32,230 -- 532,181
---------- ---------- ----------- -----------
19,157,030 1,273,368 264,418 18,148,080
---------- ---------- ----------- -----------
Operating loss ...................... (1,987,276) (1,120,288) (264,418) (1,131,406)
---------- ---------- ----------- -----------
Other income, net ...................... 100,539 99,758 -- 781
---------- ---------- ----------- -----------
Loss before minority interest and income
taxes ............................... (1,886,737) (1,020,530) (264,418) (1,130,625)
Minority interest in earnings .......... (5,136) -- -- (5,136)
---------- ---------- ----------- -----------
Loss before income taxes ............... (1,891,873) (1,020,530) (264,418) (1,135,761)
Income tax expense ..................... -- -- -- --
---------- ---------- ----------- -----------
Net loss ............................... (1,891,873) (1,020,530) (264,418) (1,135,761)
Preferred stock dividends .............. (32,812) -- -- (32,812)
---------- ---------- ----------- -----------
Net loss applicable to common
shareholders ........................ (1,924,685) (1,020,530) (264,418) (1,168,573)
========== ========== =========== ===========
Loss per common share .................. $ (.20) (.12)
========== ===========
</TABLE>
(A) Represents elimination of historical operating results of Clearing
Operation.
(B) Represents expenses to be incurred due to the sale of the Clearing
Operation.
F-2
<PAGE>
<TABLE>
<CAPTION>
Pro Forma Financial Information
Fronteer Financial Holdings, Ltd. and Subsidiaries
Pro Forma Condensed Consolidated Statement of Operations
Nine Months Ended June 30, 1996
Pro forma
adjustments
-----------
Clearing
Historical Operation(A) Other (B) Pro forma
---------- ----------- --------- ---------
<S> <C> <C> <C> <C>
Revenue ................................ $ 21,148,867 347,609 -- 20,801,258
Cost of sales and operating expenses:
Cost of sales ....................... 13,283,837 -- -- 13,283,837
General and administrative .......... 8,332,290 1,516,332 264,418 7,080,376
Depreciation and amortization ....... 694,160 37,061 -- 657,099
----------- ----------- ----------- -----------
22,310,287 1,553,393 264,418 21,021,312
----------- ----------- ----------- -----------
Operating loss ...................... (1,161,420) (1,205,784) (264,418) (220,054)
----------- ----------- ----------- -----------
Other income, net ...................... 210,168 144,496 -- 65,672
----------- ----------- ----------- -----------
Loss before minority interest and income
taxes ............................... (951,252) (1,061,288) (264,418) (154,382)
Minority interest in earnings .......... (48,984) -- -- (48,984)
----------- ----------- ----------- -----------
Loss before income taxes ............... (1,000,236) (1,061,288) (264,418) (203,366)
Income tax expense ..................... (8,397) -- -- (8,397)
----------- ----------- ----------- -----------
Net loss ............................... (1,008,633) (1,061,288) (264,418) (211,763)
Preferred stock dividends .............. (59,063) -- -- (59,063)
----------- ----------- ----------- -----------
Net loss applicable to common
shareholders ........................ (1,067,696) (1,061,288) (264,418) (270,826)
=========== =========== =========== ===========
Loss per common share .................. $ (.08) (.02)
=========== ===========
</TABLE>
(A) Represents elimination of historical operating results for Clearing
Operation.
(B) Represent expenses to be incurred due to the sale of the Clearing
Operation.
F-3
<PAGE>
EXHIBIT INDEX
Exhibit Description
- ------- -----------
Exhibit 10.1 Agreement for Sale and Purchase of Certain of the
Business and Assets of RAF Financial Corporation
dated January 29, 1996 by and among Fronteer
Directory Company, Inc., RAF Financial
Corporation and MultiSource Services, Inc.
(incorporated by reference to Exhibit 10.1 to
Registrant's Current Report on Form 8-K dated
July 23, 1996, as originally filed.)
Exhibit 10.2 Stock Subscription Agreement dated January 29,
1996 by and among Fronteer Directory Company.,
Oppenheimer Funds, Inc. and MultiSource Services,
Inc. (incorporated by reference to Exhibit 10.2
to Registrant's Current Report on Form 8-K dated
July 23, 1996, as originally filed.)
