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Previous: SOS STAFFING SERVICES INC, 10-Q, 1997-11-12 |
Next: INTEGRATED MEASUREMENT SYSTEMS INC /OR/, 10-Q, 1997-11-12 |
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 (Date of earliest event reported): September 15, 1997
------------------------
SOS Staffing Services, Inc.
(Exact name of registrant as specified in its charter)
Utah 0-26094 87-0295503 .
- ------------------------------- --------------------- -------------------
(State or other jurisdiction of (Commission File No.) (IRS Employer
incorporation) Identification No.)
1415 South Main Street
Salt Lake City, Utah 84115 .
------------------------------------------------------------
(Address of principal executive offices, including zip code)
(801) 484-4400 .
------------------------------------------------------------
(Registrant's telephone number, including area code)
--------------------------------------------------
1
<PAGE>
TABLE OF CONTENTS
Page
Item 7. Financial Statements and Exhibits ----
Unaudited Pro Forma Condensed Consolidated Balance Sheet 3
Unaudited Pro Forma Condensed Consolidated Statements of Income 4
Notes to Unaudited Pro Forma Condensed Consolidated Financial
Statements 5
Exhibits 6
SIGNATURES 7
2
<PAGE>
This Amendment No. 1 to Current Report is filed by SOS Staffing Services,
Inc. (the "Company") to provide the financial statements and proforma
information identified in Item 7.a and Item 7.b below.
Item 7. Financial Statements and Exhibits
(a) Financial Statements of business acquired
The historical financial statements of JesCo Technical Services, Inc.
("JesCo") are incorporated herein by reference to the Company's Registration
Statement No. 333-36043 and to pages F-16 through F-21 of the Definitive
Prospectus included therein, which is dated October 15, 1997.
(b) Pro Forma Financial Information
<TABLE>
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
<CAPTION>
As of June 29, 1997
(in thousands)
Historical
--------------------------------- Pro Forma
SOS JesCo Adjustments Pro Forma
--------------- -------------- ---------------- ----------------
Current Assets:
<S> <C> <C> <C> <C>
Cash and cash equivalents $ 5,042 $ 923 $ (923) (b) $ 5,042
Accounts receivable, net 21,840 1,785 (1,785) (b) 21,840
Current portion of workers'
Compensation deposit 710 - - 710
Prepaid expenses and other 319 53 (12) (b) 360
Deferred tax asset 809 - - 809
Amounts due from related parties 392 - - 392
--------------- -------------- ---------------- ----------------
Total current assets 29,112 2,761 (2,720) 29,153
--------------- -------------- ---------------- ----------------
Property and equipment, net 2,615 159 2,774
--------------- -------------- ----------------
Other assets, net 21,863 54 4,800 (a) 26,663
--------------- -------------- ----------------
(54) (b)
Total assets $ 53,590 $ 2,974 $ 2,026 $ 58,590
=============== ============== ================ ================
Current liabilities:
Line of credit $ 507 $ - - $ 507
Current portion of long-term debt - - - -
Accrued acquisition earnouts 4,460 - - 4,460
Accounts payable 401 150 (150) (b) 401
Accrued payroll costs 2,367 581 (581) (b) 2,367
Current portion of worker's
Compensation reserve 1,789 - - 1,789
Accrued liabilities 501 341 (341) (b) 501
Income taxes payable 198 - - 198
--------------- -------------- ---------------- ----------------
Total current liabilities 10,223 1,072 (1,072) 10,223
--------------- -------------- ---------------- ----------------
Long-term liabilities 542 - 5,000 (a) 5,542
--------------- -------------- ---------------- ----------------
Shareholders' equity 42,825 1,902 (1,902) (b) 42,825
--------------- -------------- ---------------- ----------------
Total liabilities and equity $ 53,590 $ 2,974 $ 2,026 $ 58,590
=============== ============== ================ ================
</TABLE>
3
<PAGE>
<TABLE>
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
For the Year Ended December 29, 1996
(in thousands, except per share data)
Historical
--------------------------------- Pro Forma
SOS JesCo Adjustments Pro Forma
--------------- -------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Service revenues $ 136,164 $ 5,148 $ - $ 141,312
Direct costs of services 108,589 3,965 - 112,554
--------------- -------------- ---------------- ---------------
Gross profit 27,575 1,183 - 28,758
Operating expenses 20,868 632 147 (c) 21,780
--------------- -------------- ---------------
133 (d)
Operating income 6,707 551 (280) 6,978
Other income (expense), net (196) (16) (400) (e) (612)
--------------- -------------- ---------------- ---------------
Income before provision for
Income taxes 6,511 535 (680) 6,366
Provision for income taxes 2,482 - (57) (f) 2,425
=============== -------------- ---------------- ===============
Net income $ 4,029 $ 535 $ (623) $ 3,941
=============== ============== ================ ===============
Net income per common
Share $ 0.59 $ 0.58
=============== ===============
Weighted average common
Shares outstanding 6,838 6,838
=============== ===============
<CAPTION>
For the Twenty-six Weeks Ended June 29, 1997
(in thousands, except per share data)
Historical
--------------------------------- Pro Forma
SOS JesCo Adjustments Pro Forma
--------------- -------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Service revenues $ 87,364 $ 4,391 $ - $ 91,755
Direct costs of services 68,447 2,597 - 71,044
--------------- -------------- ---------------- ---------------
Gross profit 18,917 1,794 - 20,711
Operating expenses 14,152 594 73 (c) 14,886
--------------- -------------- ---------------
67 (d)
Operating income 4,765 1,200 (140) 5,825
Other income (expense), net 197 - (200) (e) (3)
--------------- -------------- ---------------- ---------------
Income before provision for
Income taxes 4,962 1,200 (340) 5,822
Provision for income taxes 2,005 - 335 (f) 2,340
=============== ============== ---------------- ===============
Net income $ 2,957 $ 1,200 $ (675) $ 3,482
=============== ============== ================ ===============
Net income per common
Share $ 0.33 $ 0.38
=============== ===============
Weighted average common
Shares outstanding 9,096 9,096
=============== ===============
</TABLE>
4
<PAGE>
NOTES TO UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
(1) Basis of Presentation
The accompanying pro forma condensed consolidated statements of income are
presented to give effect to the acquisition of certain assets and substantially
all of the business operations of JesCo Technical Services, Inc. ("JesCo") which
occurred in October 1997. The condensed consolidated balance sheet as of June
29, 1997 assumes that the acquisition occurred on June 29, 1997. These condensed
consolidated statements of income assume that the acquisition occurred at the
beginning of the periods presented. Such information does no purport to be
indicative of the results which would have actually been obtained if the
acquisition had been effected at the beginning of the periods presented nor is
it indicative of actual or future operating results.
The purchase method of accounting has been used in preparing the pro
forma condensed consolidated financial statements. The purchase price was
approximately $5.0 million in cash plus contingent future earnout payments not
to exceed $7.0 million. The initial purchase price was allocated based on the
fair value of the net assets acquired and resulted in allocating approximately
$0.2 million to equipment, $4.4 million to goodwill and $0.4 million to other
intangibles.
(2) Pro Forma Adjustments
(a) To reflect the acquisition and the related long-term borrowings under
the Company's credit agreement used to fund the acquisition.
(b) To eliminate assets not acquired and liabilities not assumed by SOS.
(c) To reflect amortization of goodwill which is being amortized on a
straight-line basis over 30 years.
(d) To reflect amortization of other intangible assets (employee and
customer lists, non-compete agreements and customer contracts) which
are being amortized on a straight-line basis over 3 years.
(e) To reflect the interest expense on the borrowings used to fund the
acquisition using an interest rate of 8%.
(f) To reflect the income tax provision for JesCo which had previously
elected S Corporation status and the related income tax effect of the
pro forma adjustments.
5
<PAGE>
(g) Exhibits
2.1 Acquisition agreement. *
99.1 Press Release dated September 15, 1997. *
- -----------------------------------
*Previously filed.
6
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Current Report on Form 8-K to be signed on
its behalf by the undersigned thereto duly authorized.
SOS STAFING SERVICES, INC.
\S\ Gary B. Crook .
----------------------------------------
Gary B. Crook
Vice President, Chief Financial Officer
and Treasurer
Date: November 12, 1997
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