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Previous: GABELLI MONEY MARKET FUNDS, NSAR-A, 1997-05-28 |
Next: PRESIDENT CASINOS INC, 10-K, 1997-05-28 |
<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: May 27, 1997
------------
Date of Earliest event reported: May 15, 1997
------------
RESOURCE CAPITAL GROUP, INC.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware
- -------------------------------------------------------------------------------
(State or other jurisdiction of incorporation)
0-20272 13-3617377
- ------------------------- ----------------------------------
Commission File Number (I.R.S. Employer Identification No.)
419 Crossville Road, Suite 204, Roswell, Georgia 30075
- ---------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(770) 649-7000
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)
Page 1 of 5 Pages
<PAGE> 2
Item 2. Disposition of Assets
On May 15, 1997 AGS Carriage House Associates and AGS Compass Pointe
Associates (99% subsidiaries of the Company) sold Carriage House Apartments,
a 102 unit apartment complex located in Gautier, Mississippi and Compass
Pointe Apartments, a 113 unit apartment complex located in Pascagoula,
Mississippi to an unrelated group of individuals from Monroe, Louisiana. The
sales price for the two properties totalled $4,866,684. The purchaser
acquired the properties subject to the first mortgages on each property
which totaled $3,704,658. The Company will recognize income from this
transaction in the amount of approximately $300,000.
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits
b) Pro Forma Financial Information
Pro Forma Balance Sheet dated March 31, 1997 and Pro Forma Statement of
Operations for the year ended December 31, 1996 and for the three months
ended March 31, 1997 are included with this report.
c) Exhibits
2.1 None
2.2 None
Page 2 of 5 pages
<PAGE> 3
RESOURCE CAPITAL GROUP, INC.
ProForma Consolidated Balance Sheet
(Unaudited)
On May 15, 1997 AGS Carriage House Associates and AGS Compass Pointe Associates
(99% subsidiaries of the Company) sold the Carriage House Apartments, a 102
unit apartment complex located in Gautier, Mississippi and the Compass Pointe
Apartments, a 113 unit apartment complex located in Pascagoula, Mississippi.
The following ProForma Balance Sheet as of March 31, 1997 shows the effect such
disposition would have had on the financial condition of the Company, had the
disposition been made on March 31, 1997.
<TABLE>
<CAPTION>
ASSETS
MARCH 31, 1997
---------------------------------------------------------------
PRO FORMA
-----------------------------------
HISTORICAL ADJUSTMENTS BALANCE
---------- ----------- -------
<S> <C> <C> <C>
Cash and cash equivalents $ 425,878 $ (1) 1,088,467 $ 1,514,345
Investment in marketable equity securities-at market 21,581 21,581
Escrow deposits 9,773 (1) (9,773)
Investments in and receivables from partnerships 2,705,693 2,705,693
Receivables 34,000 34,000
Real and personal property at cost
Land 1,111,231 (1) (195,396) 915,835
Buildings and improvements 6,090,179 (1) (4,124,664) 1,965,515
Furniture, fixtures and equipment 292,725 (1) (188,179) 104,546
---------- ------------ -----------
7,494,135 (4,508,239) 2,985,896
Less accumulated depreciation (249,995) 151,665 (98,330)
---------- ------------ -----------
7,244,140 (4,356,574) 2,887,566
Deferred charges-net of accumulated amortization 266,201 (2) (194,326) 71,875
Other assets 202,567 (1) (7,765) 194,802
---------- ------------ -----------
$ 10,909,833 $ (3,479,971) $ 7,429,862
========== ============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Note payable $ 138,580 $ $ 138,580
Accounts payable 67,026 67,026
Accured expenses
Interest 46,157 (1) (30,198) 15,959
Payroll 14,588 14,588
Professional fees 17,000 17,000
Taxes 30,795 (1) (17,961) 12,834
Other 18,934 18,934
---------- ------------ -----------
127,474 (48,159) 79,315
Security deposits 63,632 (1) (38,065) 25,567
Mortgages payable 5,690,301 (1) (3,709,531) 1,980,770
Deferred tax liability 81,607 81,607
---------- ------------ -----------
Total Liabilities 6,168,620 (1) (3,795,755) 2,372,865
Commitments and contingencies
Minority Interest 113,738 113,738
Stockholders' equity
Common stock - authorized 1,000, 000 shares
$.01 par value per share, issued 498,608 shares 4,986 4,986
Additional paid-in capital 4,459,034 4,459,034
Stock warrants outstanding 24,690 24,690
Retained earnings 266,603 (1) 510,110
(2) (194,326) 582,387
Treasury stock, at cost, 91,822 shares (131,712) (131,712)
Unrealized gain on investment 3,874 3,874
---------- ------------ -----------
Total Stockholders' Equity 4,627,475 315,784 4,943,259
---------- ------------ -----------
$ 10,909,833 $ (3,479,971) $ 7,429,862
========== =========== ===========
</TABLE>
NOTES: (1) Adjustment to record sale of Carriage House and Compass
- ------ Pointe Apartments which includes $1,088,467 in cash consideration
paid by the unrelated purchasers plus full satisfaction of liabilities
and obligations due under the Deeds of Trust of the two properties o
properties.
(2) Adjustment to record remaining amortization of loan costs on
mortgages acquired by purchaser taking property subject to the first
mortgages.
Page 3 of 5 pages
<PAGE> 4
RESOURCE CAPITAL GROUP, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
On May 15, 1997 AGS Carriage House Associates and AGS Compass Pointe Associates
(99% subsidiaries of the Company) sold the Carriage House Apartments, a 102
unit apartment complex located in Gautier, Mississippi and Compass Pointe
Apartments, a 113 unit apartment complex located in Pascagoula, Mississippi.
The following Pro Forma Consolidated Statement of Operations for the three
months ended March 31, 1997 and the year ended December 31, 1996 shows the
effect such disposition would have had on the operations of the Company had
this disposition been made as of January 1, 1996.
<TABLE>
<CAPTION>
Three Months Ended
March 31, 1997
------------------------------------------------------------------------
Pro Forma
------------------------------------------
Historical Adjustments Balance
---------- ----------- -------
Revenue
<S> <C> <C> <C>
Rental operations $ 444,134 $ (1) 313,513 $ 130,621
Interest - affiliated entity 53,145 53,145
Equity in earnings (loss) of
unconsolidated partnerships 12,613 12,613
Other income 36,048 (1) 23 36,025
------------------ ------------------ -----------------
TOTAL REVENUE 545,940 313,536 232,404
------------------ ------------------ -----------------
Expenses
Rental operations 211,407 (1) 175,616 35,791
General and administrative 130,733 130,733
Interest 138,506 (1) 90,537 47,969
Depreciation and amortization 71,964 (1) 51,390 20,574
------------------ ------------------ -----------------
TOTAL EXPENSES 552,610 317,543 235,067
------------------ ------------------ -----------------
Income (loss) before
minority share of income (6,670) (4,007) (2,663)
------------------ ------------------ -----------------
Minority share of (income) loss (4,279) (1) 40 (4,319)
------------------ ------------------ -----------------
Income (loss) before income
taxes (10,949) (3,967) (6,982)
(Provision for) benefit of
income taxes 3,723 (1) 1,349 2,374
------------------ ----------------- -----------------
Net income (loss) $ (7,226) $ (2,618) $ (4,608)
================== ================= =================
Net income (loss) per share $ (0.02) $ (0.01) $ (0.01)
------------------ ----------------- -----------------
</TABLE>
<TABLE>
<CAPTION>
Year Ended
December 31, 1996
----------------------------------------------------------------------------
Pro Forma
-------------------------------------------
Historical Adjustments Balance
---------- ----------- -------
<S> <C> <C> <C>
Revenue
Rental operations $ 1,059,962 $(1) 730,807 $ 329,155
Interest - affiliated entity 212,581 212,581
Equity in earnings (loss) of
unconsolidated partnerships 1,181 (1) (14,286) 15,467
Other income 284,747 (1) 106 284,641
------------------ -------------- --------------------
TOTAL REVENUE 1,558,471 716,627 841,844
------------------ -------------- --------------------
Expenses
Rental operations 554,796 (1) 441,441 113,355
General and administrative 453,031 453,031
Interest 336,613 (1) 227,405 109,208
Depreciation and amortization 164,823 (1) 106,363 58,460
------------------ ---------------- --------------------
TOTAL EXPENSES 1,509,263 775,209 734,054
------------------ ---------------- --------------------
Income (loss) before
minority share of income 49,208 (58,582) 107,790
------------------ ---------------- --------------------
Minority share of (income) loss (14,373) 455 (14,828)
------------------ ---------------- --------------------
Income (loss) before income
taxes 34,835 (58,127) 92,962
(Provision for) benefit of
income taxes (8,084) 19,763 (27,847)
------------------ ---------------- --------------------
Net income (loss) $ 26,751 $ (38,364) $ 65,115
================== ================ ====================
Net income (loss) per share $ 0.06 $ (0.09) $ 0.15
------------------ ----------------- -------------------
</TABLE>
(1) activity from rental operations 5/31/96 (date of consolidation) through
3/31/97
NOTE: The adjustments for depreciation are based on the actual depreciation
taken on the capitalized cost of the buildings and related personal
property and the adjustment for interest are based on the current
mortgage terms.
The Company will recognize a gain on the disposition of the property
of approximately $500,000 before taxes.
The Company will also recognize amortization expense of $194,326
relating to the purchaser taking the properties subject to the first
mortgages.
Page 4 of 5 Pages
<PAGE> 5
SIGNATURES
In accordance with 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.
Resource Capital Group, Inc.
(Registrant)
By: /s/ Albert G. Schmerge III
--------------------------
Albert G. Schmerge III
President, CEO and
Chairman of the Board
Date: May 27, 1997
Page 5 of 5 Pages
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