SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 28, 1996
U.S. (UNITED SERVICES) GLOBAL INVESTORS, INC.
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(Exact name of registrant as specified in its charter)
Texas 0-13928 74-1598370
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(State of other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification No.)
7900 CALLAGHAN ROAD, SAN ANTONIO, TEXAS 78229
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 210-308-1234
UNITED SERVICES ADVISORS, INC.
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(Former name or former address, if changed since last report)
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
MAY 28, 1996 AND JUNE 10, 1996 SALE OF SECURITIES
On May 28, 1996 and June 10, 1996 U.S. (United Services) Global Investors,
Inc. (the "Registrant" or "USGI") reduced its investment in government notes
("Notes") financed by reverse repurchase agreements with various broker/dealers
by selling an additional $28.745 million (par value) in Notes in open market
transactions. These transactions strengthen the Registrant's balance sheet and
improve its financial ratios and cash flow. Going forward, the Registrant is
expected to save annual interest costs on debt that was used to finance the
Notes of approximately $320,000. Notes totaling $130.525 million were acquired
during the fiscal year ended June 30, 1995. To date, USGI has reduced its
investment in the Notes by approximately 68%.
These transactions resulted in Registrant recording a net realized loss of
$50,000 before tax ($0.01 per share) which it will recognize during the fourth
quarter of fiscal 1996.
ITEM 7. FINANCIAL STATEMENTS, INFORMATION AND EXHIBITS.
(b) Proforma financial information: Unaudited Consolidated Balance Sheet
and Statement of Operations of Registrant at March 31, 1996.
(c) Exhibits.
None
SIGNATURES
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.
U.S. (United Services) Global Investors, Inc.
By: /s/ SUSAN B. MC GEE
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Susan B. McGee
Vice President, Secretary
Dated: June 11, 1996
U. S. GLOBAL INVESTORS,INC.
UNAUDITED PRO FORMA PRO FORMA
CONSOLIDATED BALANCE SHEET ................................... AS OF ADJUSTMENTS(1) ADJUSTMENTS(2) PRO FORMA
MARCH 31, 1996 MAY 28, 1996 JUNE 10, 1996 RESULTS
CURRENT ASSETS
CASH & INTEREST BEARING DEPOSITS .......................... 2,196,616 (401,985) (313,333) 1,481,298
TRADING SECURITIES ........................................ 1,781,771 0 0 1,781,771
GOVERNMENT SECURITIES ..................................... 53,013,538 0 (12,722,249) 40,291,289
RECEIVABLES ............................................... 2,003,736 (63,786) (55,499) 1,884,451
PREPAID EXPENSES .......................................... 560,939 0 0 560,939
---------- ----------- ----------- ----------
TOTAL CURRENT ASSETS ......................................... 59,556,600 (465,771) (13,091,081) 45,999,748
---------- ----------- ----------- ----------
NET FIXED ASSETS ........................................... 2,599,239 0 0 2,599,239
---------- ----------- ----------- ----------
GOVERNMENT SECURITIES ...................................... 16,301,750 (16,301,750) 0 0
AVAILABLE-FOR-SALE SECURITIES ............................. 4,531,835 0 0 4,531,835
OTHER LONG-TERM ASSETS ..................................... 3,673,075 0 0 3,673,075
---------- ----------- ----------- ----------
TOTAL OTHER ASSETS ......................................... 24,506,660 (16,301,750) 0 8,204,910
TOTAL ASSETS ............................................... 86,662,499 (16,767,521) (13,091,081) 56,803,897
========== =========== =========== ==========
CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER ................................. 1,348,457 (80,611) (122,178) 1,145,668
SECURITIES SOLD UNDER AGMT TO REPURCHASE ................... 68,739,117 (16,094,875) (11,748,744) 40,895,498
SUBORDINATED DEBENTURE (CURRENT) ........................... 3,240,818 0 (749,955) 2,490,863
DEFERRED TAX LIABILITY ..................................... 963,606 73,835 (159,870) 877,572
OTHER CURRENT LIABILITIES .................................. 99,838 0 0 99,838
---------- ----------- ----------- ----------
TOTAL CURRENT LIABILITIES .................................. 74,391,836 (16,101,651) (12,780,746) 45,509,439
---------- ----------- ----------- ----------
SUBORDINATED DEBENTURE (LONG-TERM) ......................... 809,198 (809,198) 0 0
OTHER LONG-TERM LIABILITIES ................................ 1,723,674 0 0 1,723,674
TOTAL LONG-TERM LIABILITIES ................................ 2,532,872 (809,198) 0 1,723,674
---------- ----------- ----------- ----------
TOTAL LIABILITIES ............................................ 76,924,708 (16,910,849) (12,780,746) 47,233,113
---------- ----------- ----------- ----------
SHAREHOLDERS EQUITY
PREFERRED & COMMON STOCK @ PAR ............................. 339,268 0 0 339,268
ADDITIONAL PAID IN CAPITAL ................................. 11,184,756 0 0 11,184,756
TREASURY STOCK ............................................. (511,204) 0 0 (511,204)
NET UNREALIZED HOLDING GAIN (NET OF TAX) ................... 1,703,393 12,272 0 1,715,665
RETAINED EARNINGS (DEFICIT) ................................ (2,978,422) 131,056 (310,335) (3,157,701)
---------- ----------- ----------- ----------
TOTAL SHAREHOLDERS EQUITY .................................... 9,737,791 143,328 (310,335) 9,570,784
TOTAL LIABILITIES & SHLDR. EQUITY ............................ 86,662,499 (16,767,521) (13,091,081) 56,803,897
========== =========== =========== ==========
0 0 (0) 0
<FN>
(1) See Item 2 to this Form 8-K for a description of the transaction.
(1) See Item 2 to this Form 8-K for a description of the transaction.
</FN>
U. S. GLOBAL INVESTORS,INC.
CONSOLIDATED INCOME STATEMENT
AUDITED PRO FORMA PRO FORMA
REVENUES QUARTER ENDED ADJUSTMENTS(1) ADJUSTMENTS(2) PRO FORMA
MARCH 31, 1996 MAY 28, 1996 JUNE 10, 1996 RESULTS
MANAGEMENT FEES (NET) ................................ 4,283,302 0 0 4,283,302
NET TRANSFER AGENCY FEES ............................. 2,465,659 0 0 2,465,659
INVESTMENT INCOME .................................... 2,873,299 65,977(3) 71,018(4) 3,010,294
OTHER FEES AND INCOME ................................ 1,277,429 0 0 1,277,429
GOVERNMENT SECURITY INTEREST INCOME .................. 3,533,037 (724,747) (504,292) 2,303,998
GOVERNMENT SECURITY ACCRETION TO PAR ................. 1,211,584 (64,710) (733,637)(5) 413,237
---------- -------- -------- ----------
TOTAL REVENUE ........................................ 15,644,310 (723,480) (1,166,911) 13,753,919
========== ======== ======== ==========
UNAUDITED PRO FORMA PRO FORMA
EXPENSES QUARTER ENDED ADJUSTMENTS (ADJUSTMENTS (2 PRO FORMA
MARCH 31, 1996 MAY 28, 1996 JUNE 10, 1996 RESULTS
TOTAL GENERAL & ADMINISTRATIVE ....................... 8,028,360 0 0 8,028,360
DEPRECIATION & AMORTIZATION .......................... 362,672 0 0 362,672
INTEREST & FINANCE CHARGES ........................... 95,023 0 0 95,023
INTEREST EXPENSE - SEC SOLD TO REPURCHASE ............ 4,419,065 (854,494) (639,209) 2,925,362
INTEREST EXPENSE - SUBORDINATED DEBENTURE ............ 263,595 (67,556) (57,497) 138,542
---------- -------- -------- ----------
TOTAL EXPENSES ....................................... 13,168,715 (922,050) (696,706) 11,549,959
---------- -------- -------- ----------
INCOME (LOSS) BEFORE TAX ............................. 2,475,595 198,570 (470,205) 2,203,960
---------- -------- -------- ----------
FEDERAL TAXES ........................................ 893,791 67,514 (159,870) 801,435
NET INCOME (LOSS) .................................... 1,581,804 131,056 (310,335) 1,402,525
========== ======== ======== ==========
- - ------------------------------------------------------------------------------------------------------------------------------------
PRO FORMA EARNINGS PER SHARE
Primary & Fully Diluted $0.24 $0.02 ($0.05) $0.21
WEIGHTED AVERAGE SHARES OUTSTANDING
Primary & Fully Diluted 6,574,926 6,574,926 6,574,926 6,574,926
<FN>
(1) See Item 2 to this Form 8-K for a description of the transaction.
(1) See Item 2 to this Form 8-K for a description of the transaction.
(3) Amount represents realized gain on sale of $16.55 million par value goverment note of $1,267 plus accretion of $64,710
that was adjusted when the note was reclassified from the held-to-maturity category to the available-for-sale category
pursuant to the FASB Special Report on SFAS 115 in December 1995.
(4) Amount represents realized loss on sale of $12.195 million par value goverment notes of ($51,733) plus accretion of $122,751
on the notes sold that was adjusted retroactive to July 1, 1995 as specified by Article 11 of Regulation S-X.
(5) Upon sale of the $12.195 million par value government notes, the remaining $41.53 par value notes held by the Company were
reclassified reclassified from the held-to-maturity category to the available-for-sale category pursuant to SFAS 115.
Therefore, this amount represents the sum of the accretion on sale of $12.195 million par value goverment note of $122,751
(see (4)) plus accretion of $610,886 on the remaining $41.53 par value notes adjusted retroactive to July 1, 1995 as
specified by Article 11 of Regulation S-X.
</FN>