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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: JULY 16, 1999
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(DATE OF EARLIEST EVENT REPORTED)
CARE FIRST INC.
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(Exact name of registrant as specified in its charter)
MINNESOTA 33-84692C 41-0877001
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(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of Incorporation)
3720 23RD AVENUE SOUTH
MINNEAPOLIS, MINNESOTA 55407
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(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 724-5495
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Items 1, 2, 3, 4, 5, 6 and 8 are not included.
The registrant filed on May 17, 1999 a current report on Form 8-K relating to
the sale in which Shelter Care Foundation, a District of Columbia non-profit
corporation, purchased the registrant's 256 bed nursing home facility, known as
the Nile Health Care Center. The purpose of this amendment is to provide the
financial statements and information required by Item 7 of the Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial statements of businesses acquired:
Not applicable.
(b) Pro forma financial information:
Exhibit 99.1 filed herewith contains the following pro forma condensed financial
statements:
Exhibit 99.1 Pro Forma Balance Sheet as of March 31, 1998
Pro Forma Statement of Operations for Year Ended September 30, 1998
Pro Forma Statement of Operations for the Six Months Ended March
31, 1999
Notes to Pro Forma Financial Statements
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UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS
The unaudited pro forma condensed statements of operations and condensed balance
sheet [collectively, the "pro forma statements"] had been derived by the
application of pro forma adjustments, which give effect to the disposition of
the Nile health-care center. The transaction had been presented as if
consummated for balance sheet purposes as of March 31, 1999 and for statement of
income purposes as of the beginning of the periods presented.
The pro forma statements do not purport to represent what Care First Inc.'s
financial position or results of operations would have been had the transaction
in fact occurred on the assumed dates or to project the financial position or
results of operations for any future date or future period. The pro forma
statements should be read in conjunction with the historical financial
statements and related notes.
The pro forma adjustments as described in the notes to the pro forma statements
are based on available information and certain assumptions that management
believes a reasonable.
NOTES TO UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS
(1) These adjustments remove the assets that were sold.
(2) This adjustment record the net cash received at closing.
(3) These adjustments remove the debt extinguished at closing.
(4) This adjustment records the income tax provision and taxes payable
resulting from the gain recognized upon disposition.
(5) These adjustments remove the operating activities that would not have
occurred had the Nile Health care center been sold at the beginning of the
period.
(6) This adjustment records the gain upon disposition.
Note: Since management intends to distribute cash to shareholders, as it
becomes available, significant interest income has not been recognized.
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CARE FIRST INC.
PROFORMA CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, March 31,
1999 Proforma 1999
(Unaudited) Adjustments (as adjusted)
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<S> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 37,018 $ 6,693,306 (2)$ 6,730,324
Available-for-sale securities 372,666 372,666
Accounts receivable, net 1,215,563 1,215,563
Restricted trust funds 660,540 (660,540) (1) -
Note receivable - stockholders, net 37,967 37,967
Prepaid expenses 196,319 196,319
Other current assets 8,529 8,529
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Total Current Assets $ 2,528,602 $ 8,561,368
RESTRICTED TRUST FUNDS, NET OF CURRENT PORTION 1,000,003 (1,000,003) (1) -
PROPERTY AND EQUIPMENT, NET 9,616,362 (9,616,362) (1) -
INTANGIBLE ASSETS, NET 1,010,854 (1,010,854) -
DEFERRED INCOME TAXES - -
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$ 14,155,821 $ 8,561,368
============== ==============
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Checks written in excess of cash in bank $ - $ -
Current portion of long-term debt 325,000 (325,000) (3) -
Accounts payable 300,139 300,139
Accrued payroll, vacation and payroll taxes 401,643 401,643
Accrued interest 439,534 439,534
Income taxes payable - 3,200,000 (4) 3,200,000
Accrued real estate taxes and accrued expenses 412,775 (412,775) (3) -
Resident trust funds payable 48,838 (48,838) (3) -
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Total Current Liabilities $ 1,927,929 $ 4,341,316
LONG-TERM DEBT, NET OF CURRENT PORTION 12,241,677 (12,241,677) (3) -
DEFERRED COMPENSATION 99,397 99,397
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Total Liabilities $ 14,269,003 $ 4,440,713
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STOCKHOLDERS' DEFICIT:
Class A Voting Common Stock, $.01 par value, 500
shares authorized, issued and outstanding 5 5
Class B Non-voting Common Stock, $.01 par value,
10,000 shares authorized, issued and outstanding 100 100
Additional Paid-in Capital 17,660 17,660
Retained Earnings (Accumulated Deficit) (130,947) 4,233,837 4,102,890
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Total Stockholders' Deficit $ (113,182) $ 4,120,655
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$ 14,155,821 $ 8,561,368
============== ==============
</TABLE>
See accompanying notes to proforma condensed financial statements.
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CARE FIRST INC.
PROFORMA CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Six Months Ended
March 31, 1999
Historical Proforma
(Unaudited) adjustments As adjusted
------------------ ------------------- ------------------
<S> <C> <C> <C>
REVENUES:
Resident Services $ 5,064,943 $ (5,064,943) (5)$ -
------------------ ------------------ -----------------
Total Revenue $ 5,064,943 $ (5,064,943) $ -
================== ================== =================
OPERATING EXPENSES:
Resident Services $ 4,364,464 $ (4,364,464) (5)$ -
Home Health Services 25,992 (25,992) (5) -
------------------ ------------------ -----------------
Total Operating Expenses $ 4,390,456 $ (4,390,456) $ -
================== ================== =================
INCOME FROM OPERATIONS BEFORE
DEPRECIATION, AMORTIZATION AND INTEREST $ 674,487 $ (674,487) (5)$ -
DEPRECIATION AND AMORTIZATION 254,124 (254,124) (5) -
INTEREST 662,801 (662,801) (5) -
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INCOME (LOSS) FROM OPERATIONS $ (242,438) $ 242,438 $ -
OTHER INCOME 103,458 7,320,108 (6) 7,423,566
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INCOME (LOSS) BEFORE INCOME TAXES $ (138,980) $ 7,562,546 $ 7,423,566
PROVISION FOR (BENEFIT OF) INCOME TAXES (45,000) 3,245,000 (4) 3,200,000
------------------ ------------------ -----------------
NET INCOME (LOSS) $ (93,980) $ 4,317,546 $ 4,223,566
================== ================== =================
</TABLE>
See accompanying notes to proforma condensed financial statements.
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CARE FIRST INC.
PROFORMA CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Year Ended
September 30, 1998
Historical Proforma
(Unaudited) adjustments As adjusted
------------------ ------------------- ------------------
<S> <C> <C> <C>
REVENUES:
Resident Services $ 9,984,278 $ (9,984,278) (5)$ -
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Total Revenue $ 9,984,278 $ (9,984,278) $ -
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OPERATING EXPENSES:
Resident Services $ 8,286,288 $ (8,286,288) (5)$ -
Home Health Services 19,618 (19,618) (5) -
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Total Operating Expenses $ 8,305,906 $ (8,305,906) $ -
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INCOME FROM OPERATIONS BEFORE
DEPRECIATION, AMORTIZATION AND INTEREST $ 1,678,372 $ (1,678,372) (5)$ -
DEPRECIATION AND AMORTIZATION 497,893 (497,893) (5) -
INTEREST 1,347,831 (1,347,831) (5) -
----------------- ------------------ -----------------
INCOME (LOSS) FROM OPERATIONS $ (167,352) $ 167,352 $ -
OTHER INCOME 357,626 6,687,043 (6) 7,044,669
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INCOME BEFORE INCOME TAXES $ 190,274 $ 6,854,395 $ 7,044,669
PROVISION FOR INCOME TAXES 74,000 2,926,000 (4) 3,000,000
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NET INCOME $ 116,274 $ 3,928,395 $ 4,044,669
================= ================== =================
</TABLE>
See accompanying notes to proforma condensed financial statements.
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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 hereunto duly authorized.
CARE FIRST INC.
By /s/ Jack E. Nugent
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Jack E. Nugent
President and Director of Finance
July 16, 1999
