UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 4 )*
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Pediatric Services of America, Inc. (PSAI.OB)
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(Name of Issuer)
COMMON
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(Title of Class of Securities)
705323103
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(CUSIP Number)
David Nierenberg, The D3 Family Fund, 19605 NE 8th St., Camas, WA 98607
360-604-8600
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(Name, Address and Telephone Number
of Person Authorized to Receive
Notices and Communications)
12/21/00
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(Date of Event which Requires
Filing of this Statement)
*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 the disclosures provided in a prior cover page.
The information required in 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).
1 of 6
<PAGE>
SCHEDULE 13D/A
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CUSIP No. 705323103 Page 2 of 6
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The D3 Family Fund, L.P. (David Nierenberg is President of the General
Partner, which is Nierenberg Investment Management Company.)
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2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ X ]
(b) [ ]
3) SEC USE ONLY
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4) SOURCE OF FUNDS
WC
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
Washington
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7) SOLE VOTING POWER
NUMBER OF
994,930 common shares (14.9%)
SHARES --------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY 0
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EACH
9) SOLE DISPOSITIVE POWER
REPORTING
994,930
PERSON --------------------------------------------------
WITH 10) SHARED DISPOSITIVE POWER
0
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11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Aggregate amount owned is 1,024,930 shares (15.4%)
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12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
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13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.4%
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14) TYPE OF REPORTING PERSON*
PN
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<PAGE>
SCHEDULE 13D/A
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CUSIP No. 705323103 Page 3 of 6
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Haredale, Ltd.
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2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ X ]
(b) [ ]
3) SEC USE ONLY
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4) SOURCE OF FUNDS
WC
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
The Bahamas
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7) SOLE VOTING POWER
NUMBER OF
30,000 common shares (0.5%)
SHARES --------------------------------------------------
BENEFICIALLY 8) SHARED VOTING POWER
OWNED BY 0
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EACH
9) SOLE DISPOSITIVE POWER
REPORTING
30,000
PERSON --------------------------------------------------
WITH 10) SHARED DISPOSITIVE POWER
0
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11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Aggregate amount owned is 1,024,930 shares (15.4%)
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12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
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13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.4%
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14) TYPE OF REPORTING PERSON*
CO
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<PAGE>
Page 4 of 6
Item 1. Security and Issuer
Common stock of Pediatric Services of America, Inc. (PSAI.OB)
310 Technology Parkway, Norcross GA 30092-2929.
Item 2. Identity and Background
The D3 Family Fund, L.P., a Washington State partnership, whose
principal business is investing in the equities of public micro-cap
issuers. Located at 19605 N.E. 8th St., Camas, Washington 98607. No
convictions or administrative proceedings.
Item 3. Source and Amount of Funds or Other Consideration
Source of funds is money invested in the partnership by its partners.
Aggregate amount invested in PSAI shares purchased by the partnership
is $3,655,830.
Item 4. Purpose of Transaction
The purpose of the share purchases is for investment in the nation's
leading provider of pediatric home health care. We believe that PSAI
management has done a superb job of refocusing on core operations, of
deleveraging the balance sheet, and of improving operating cash flow.
Moreover, the reimbursement climate continues to improve, with state
Medicaid programs, the Federal Medicare program, and private sector
payors generally raising reimbursement rates. As we had predicted in
our previous filings, PSAI now has returned to profitability.
We expect profitability to continue increasing from here, ultimately to
return to 1996-1997 levels. Driving this will be the above mentioned
rate increases, patient volume increases (such as those made possible
by the company's recently announced contract with Aetna U.S.
Healthcare), continuing cost reduction, and continuing improvement in
PSAI's balance sheet. Last week's FASB proposal to end the
amortization of acquisition-related goodwill by the second half of
2001 could further boost PSAI's profit by as much as five cents more
per share per quarter. As a result of these trends we believe PSAI's
share price could quadruple from here over the next several years.
Therefore we are delighted that on December 21, 2000 PSAI's board of
directors modified the company's poison pill so that we could acquire
up to 20% of the company. We resumed purchasing PSAI shares the
following day.
None of the other actions described in items 4(a)-(j) are currently
contemplated.
Item 5. Interest in Securities of the Issuer
(a,b) D3 owns, and has sole voting and dispositive power over, 994,930
common shares of PSAI.OB (14.9%). In addition, 30,000 more common
shares of PSAI.OB are owned by Haredale, Ltd., a Bahamian corporation.
Aggregating D3 and Haredale, the group owns 1,024,930 common shares
(15.4%).
(c) D3's transactions in the last 60 days were the following
transactions:
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Page 5 of 6
No. of PSAI Average purchase
Date shares purchased price
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11/17 1,500 3.875
11/21 6,000 3.875
11/22 8,000 3.875
11/28 2,500 3.875
11/29 15,000 4.0911
11/30 4,000 4.1875
12/4 7,000 4.875
12/15 2,000 4.8125
12/22 4,500 4.7847
12/26 19,500 4.8974
12/27 2,500 4.9375
(d) N/A
(e) N/A
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
N/A
Item 7. Material to be Filed as Exhibits
N/A
Signature
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.
December 27, 2000 DAVID NIERENBERG
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Date David Nierenberg
President
Nierenberg Investment Management
Company, Inc., the General Partner
Of The D3 Family Fund, L.P.
<PAGE>
Page 6 of 6
Item 1. Security and Issuer
Same as Item 1 on Page 4.
Item 2. Identity and Background
(a) Haredale Ltd., a Bahamian corporation.
(b) P.O. Box N-4465, Nassau, New Providence, The Bahamas.
(c) Haredale is in the investment business at the address above.
(d) None
(e) None
(f) The Bahamas.
Item 3. Source and Amount of Funds or Other Consideration
Haredale owns, and Mr. Nierenberg has sole voting and dispositive power
over, its 30,000 shares. Source of funds is money invested in Haredale.
Aggregate amount invested in PSAI.OB shares purchased by Haredale is
$62,697, including commission.
Item 4. Purpose of Transaction
Same as Item 4 on Page 4.
Item 5. Interest in Securities of the Issuer
(a,b) Haredale owns, and Mr. Nierenberg has sole voting and
dispositive power over, its 30,000 shares.
(c) No transactions during the past 60 days.
(d) N/A
(e) N/A
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
Haredale pays Mr. Nierenberg an annual management fee and a share
of its net profits for his personal management of its accounts.
Item 7. Material to be Filed as Exhibits
N/A
Signature
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.
December 27, 2000 DAVID NIERENBERG
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Date David Nierenberg
Authorized to trade for
Haredale, Ltd.
