SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
AMENDMENT NO. 1
TO THE CURRENT REPORT
Filed Pursuant to Section 13 or 15 (d) of
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 11, 1997
NFO RESEARCH, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-21460 06-1327424
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
2 Pickwick Plaza
Greenwich, CT 06830
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Registrant's telephone number, including area code: (203) 629-8888
<PAGE>
Item 2. Acquisition or Disposition of Assets
On July 25, 1997 the Registrant filed a current report on Form 8-K and
reported under Item 2 that on July 11, 1997 the Registrant acquired
100% of the outstanding stock of The MBL Group Plc ("MBL"), a company
incorporated under the laws of England and Wales, from John and Mary
Goodyear. Because it was impracticable to provide the required
financial statements for the acquired business and pro forma financial
information related to the transaction at the time of filing, such
financial statements and pro forma financial information were not
included with that report on Form 8-K. Upon completion of its
acquisition of MBL (including its minority interests), and final review
of the relevant financial statements, the Registrant has subsequently
determined that financial statements and pro forma information are not
required to be filed under Item 7 of Form 8-K based on the lack of
significance of these acquisitions to the Registrant. Nevertheless, the
Company has voluntarily decided to file the supplemental financial
statements for the combined operations of NFO Research, Inc. and the
MBL Group Plc in Item 7 herein.
In Item 7, the Registrant has provided supplemental income statements
for the years ended December 31, 1993 through December 31, 1996,
showing the combined results of both NFO and MBL. In addition, included
are supplemental income statements for each of the quarters in 1996 and
for the three month periods ended March 31, 1997 and June 30, 1997. The
acquisition of MBL will be accounted for as a pooling of interests and
all financial statements for prior periods will be retroactively
restated in future filings once post-combination financial information
has been filed.
For a completed description of the transaction, please refer to the MBL
Share Purchase Agreement and the Minority Shareholder Share Purchase
Agreements attached to the Current Report on Form 8-K filed July 25,
1997 by the Registrant.
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and Supplemental
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Financial Information
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(a) Financial Statements of Business Acquired:
Upon completion of the acquisitions of MBL and its minority
interests, the Registrant has determined that Financial statements
are not required to be filed herein based on the lack of
significance of these acquisitions to the Registrant.
(b) Pro Forma Financial Information:
Upon completion of the acquisitions of MBL and its minority
interests, the Registrant has determined that pro forma financial
information is not required to be filed herein based on the lack
of significance of these acquisitions to the Registrant.
(c) Supplemental Financial Information:
SUPPLEMENTAL ANNUAL INCOME STATEMENTS FOR THE COMBINED OPERATIONS OF
NFO RESEARCH, INC. AND THE MBL GROUP PLC
<TABLE>
<CAPTION>
FOR YEARS ENDED DECEMBER 31:
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1993 1994 1995 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
REVENUES $ 76,738 $ 90,435 $ 113,095 $ 154,943
COST OF REVENUES 31,664 37,367 48,431 66,693
SELLING, GENERAL AND ADMINISTRATIVE 31,037 36,391 44,167 61,591
DEPRECIATION EXPENSE 1,372 1,483 1,825 2,356
AMORTIZATION OF INTANGIBLE ASSETS 2,370 2,071 2,203 2,926
--------- --------- --------- ---------
OPERATING INCOME 10,295 13,123 16,469 21,377
INTEREST EXPENSE, NET 709 31 (142) 38
OTHER EXPENSES (INCOME) 60 258 0 (17)
EQUITY INTEREST IN NET LOSS (INCOME)
OF AFFILIATED COMPANIES (169) (118) (186) 335
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES AND
MINORITY INTEREST 9,695 12,952 16,797 21,021
INCOME TAX EXPENSE 3,944 4,299 6,172 8,983
--------- --------- --------- ---------
NET INCOME BEFORE MINORITY INTEREST 5,751 8,653 10,625 12,038
MINORITY INTEREST (INCOME) EXPENSE 759 982 1,466 1,422
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NET INCOME $ 4,992 $ 7,671 $ 9,159 $ 10,616
========= ========= ========= =========
EARNINGS PER SHARE $ .44 $ .61 $ .72 $ .76
========= ========= ========= =========
WEIGHTED AVERAGE SHARES OUTSTANDING 11,435 12,573 12,786 13,908
========= ========= ========= =========
</TABLE>
<PAGE>
SUPPLEMENTAL QUARTERLY INCOME STATEMENTS FOR THE COMBINED OPERATIONS OF
NFO RESEARCH, INC. AND THE MBL GROUP PLC
<TABLE>
<CAPTION>
FOR THE QUARTERS ENDED:
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1996 1997
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MAR. 31 JUNE 30 SEPT. 30 DEC. 31 MAR. 31 JUNE 30
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<S> <C> <C> <C> <C> <C> <C>
REVENUES $ 33,490 $ 37,696 $ 38,241 $ 45,516 $ 42,020 $ 47,025
COST OF REVENUES 14,585 15,607 16,339 20,162 19,116 21,032
SELLING, GENERAL AND ADMINISTRATIVE 13,971 14,526 15,157 17,937 16,779 18,850
DEPRECIATION EXPENSE 555 552 594 655 628 678
AMORTIZATION OF INTANGIBLE ASSETS 784 783 775 584 750 722
-------- -------- -------- -------- -------- --------
OPERATING INCOME 3,595 6,228 5,376 6,178 4,747 5,743
INTEREST EXPENSE, NET 15 12 (37) 48 9 63
OTHER EXPENSES (INCOME) (8) (4) (9) 4 (9) (81)
EQUITY INTEREST IN NET LOSS (INCOME)
OF AFFILIATED COMPANIES 127 128 32 48 76 78
-------- -------- -------- -------- -------- --------
INCOME BEFORE INCOME TAXES AND
MINORITY INTEREST 3,461 6,092 5,390 6,078 4,671 5,683
INCOME TAX EXPENSE 1,564 2,626 2,339 2,454 1,901 2,568
-------- -------- -------- -------- -------- --------
NET INCOME BEFORE MINORITY INTEREST 1,897 3,466 3,051 3,624 2,770 3,115
MINORITY INTEREST (INCOME) EXPENSE 112 532 183 595 419 393
-------- -------- -------- -------- -------- --------
NET INCOME $ 1,785 $ 2,934 $ 2,868 $ 3,029 $ 2,351 $ 2,722
======== ======== ======== ======== ======== ========
EARNINGS PER SHARE $ .13 $ .21 $ .21 $ .22 $ .17 $ .20
======== ======== ======== ======== ======== ========
WEIGHTED AVERAGE SHARES
OUTSTANDING 13,693 13,803 13,849 13,977 13,687 13,771
======== ======== ======== ======== ======== ========
</TABLE>
<PAGE>
SIGNATURES
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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, thereunto duly authorized.
Date: September 22, 1997 NFO RESEARCH, INC.,
By: /s/ Patrick G. Healy
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Name: Patrick G. Healy
Title: EVP-Finance and
Chief Financial Officer
