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FORM 8-KA
CURRENT REPORT
Amendment No. 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported):
November 26, 1997
Commission File Number 0-18655
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THE FAILURE GROUP, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 77-0218904
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(State or other (I.R.S. Employer
jurisdiction of incorporation) Identification Number)
149 COMMONWEALTH DRIVE, MENLO PARK, CALIFORNIA 94025
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(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (650) 326-9400
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The Registrant hereby amends Item 7 of its Current Report on Form 8-K filed
October 3, 1997 in its entirety to read as follows:
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
The following financial statements and exhibits are filed as part of
this report where indicated.
(b) Pro Forma Financial Information:
The following unaudited pro forma combined financial data presents the
Pro Forma Combined Statement of Income for the fiscal year ended
January 3, 1997 after giving effect to the sale as if the sale had
taken place January 3, 1997. The pro forma data is based on the
historical consolidated financial statements of the Registrant and the
historical financial statements of PLG, Inc., (PLG).
The unaudited pro forma data is provided for comparative purposes
only. It does not purport to be indicative of the results that
actually would have occurred if the sale had been consummated on the
date indicated or which may be obtained in the future.
The Failure Group, Inc. and PLG, Inc. Unaudited Pro Forma Condensed
Statements of Income for the Year Ended January 3, 1997.
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THE FAILURE GROUP, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Twelve Months Ended January 3, 1997
(in thousands, except per share data)
Less
FGI, Inc. PLG, Inc. PRO FORMA
Actuals Actuals Total Combined
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<S> <C> <C> <C>
Revenues
Professional fees .......................... $ 52,857 $ 5,392 $ 47,465
Equipment fees and billed expenses ......... 5,236 -- 5,236
Other revenue .............................. 572 -- 572
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$ 58,665 $ 5,392 $ 53,273
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Operating expenses
Compensation and related expenses .......... 33,611 4,156 29,455
Other operating expenses ................... 13,882 829 13,053
General and administrative expenses ........ 9,720 502 9,218
Impairment of long-lived assets ............ 1,572 1,572 --
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$ 58,785 $ 7,059 $ 51,726
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Operating income (loss) ............... (120) (1,667) 1,547
Other income and expense
Interest Expense, net ...................... (1,138) 50 (1,188)
Misc. Income, net .......................... 1,608 (14) 1,622
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350 (1,631) 1,981
Provision (benefit) before income taxes .... $ 343 $ (24) $ 367
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Income (loss) from continuing operations ... $ 7 $ (1,607) $ 1,614
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Net income per share from continuing operations $ 0.00 $ (0.24) $ 0.24
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Weighted average number of common shares
from continuing operations ..................... 6,702 6,702 6,702
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SIGNATURE
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.
THE FAILURE GROUP, INC
Dated: November 26, 1997 By: /s/ Michael R. Gaulke
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Michael R. Gaulke
President and Chief Executive Officer
