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): June 27, 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
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(Former name or former address, if changed since last report)
Item 2. Acquisition or Disposition of Assets.
June 27, 1996 Sale of Securities
On June 27, 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 $14.805 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 $149,000. 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 80%.
This transaction resulted in Registrant recording a net realized loss
of $23,000 before tax ($0.01 per share) which it will recognize during the
fourth quarter of fiscal 1996.
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As reflected in a Special Report on Form 8-K filed June 12, 1996, USGI
reduced its investment in Notes by selling $28.745 million (par value) Notes in
open market transactions on May 28, 1996 and June 10, 1996. These previous
transactions resulted in interest savings of approximately $320,000 and resulted
in the 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.
The combined effect of all of these transactions (May 28, 1996, June
10, 1996, and June 27, 1996) was an interest savings of approximately $469,000.
In addition, the company will recognize a net realized loss of $73,000 ($0.01
per share).
Item 7. Financial Statements, Information and Exhibits.
(b) Pro forma 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. MCGEE
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Susan B. McGee
Vice President, Secretary
Dated: July 9, 1996
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U. S. GLOBAL INVESTORS,INC
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UNAUDITED PRO FORMA PRO FORMA PRO FORMA
CONSOLIDATED BALANCE SHEET AS OF ADJUSTMENTS(1) ADJUSTMENTS(2) ADJUSTMENTS(3) PRO FORMA
MARCH 31, 1996 MAY 28, 1996 JUNE 10, 1996 JUNE 27, 1996 RESULTS
-------------- -------------- -------------- ------------- ---------
CURRENT ASSETS
CASH & INTEREST BEARING DEPOSITS ................. 2,196,616 (401,985) (313,333) (347,020) 1,134,278
TRADING SECURITIES ............................... 1,781,771 0 0 0 1,781,771
GOVERNMENT SECURITIES ............................ 53,013,538 0 (12,722,249) (14,635,568) 25,655,721
RECEIVABLES ...................................... 2,003,736 (63,786) (55,499) (67,718) 1,816,733
PREPAID EXPENSES ................................. 560,939 0 0 0 560,939
----------- ----------- ----------- ----------- -----------
TOTAL CURRENT ASSETS .............................. 59,556,600 (465,771) (13,091,081) (15,050,306) 30,949,442
NET FIXED ASSETS .................................. 2,599,239 0 0 0 2,599,239
GOVERNMENT SECURITIES ............................. 16,301,750 (16,301,750) 0 0 0
AVAILABLE-FOR-SALE SECURITIES ..................... 4,531,835 0 0 0 4,531,835
OTHER LONG-TERM ASSETS ............................ 3,673,075 0 0 0 3,673,075
----------- ----------- ----------- ----------- -----------
TOTAL OTHER ASSETS ................................ 24,506,660 (16,301,750) 0 0 8,204,910
TOTAL ASSETS ...................................... 86,662,499 (16,767,521) (13,091,081) (15,050,306) 41,753,591
=========== =========== ============ ============ ===========
UNAUDITED PRO FORMA PRO FORMA PRO FORMA
CONSOLIDATED BALANCE SHEET AS OF ADJUSTMENTS(1) ADJUSTMENTS(2) ADJUSTMENTS(3) PRO FORMA
MAY 31, 1996 MAY 28, 1996 JUNE 10, 1996 JUNE 27, 1996 RESULTS
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CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER ....................... 1,348,457 (80,611) (122,178) (53,488) 1,092,180
SECURITIES SOLD UNDER AGMT TO REPURCHASE.......... 68,739,117 (16,094,875) (11,748,744) (14,305,331) 26,590,167
SUBORDINATED DEBENTURE (CURRENT).................. 3,240,818 0 (749,955) (907,784) 1,583,079
DEFERRED TAX LIABILITY............................ 963,606 73,835 (159,870) 73,541 951,113
OTHER CURRENT LIABILITIES......................... 99,838 0 0 0 99,838
----------- ----------- ----------- ----------- ----------
TOTAL CURRENT LIABILITIES ......................... 74,391,836 (16,101,651) (12,780,746) (15,193,062) 30,316,377
SUBORDINATED DEBENTURE (LONG-TERM) ................ 809,198 (809,198) 0 0 0
OTHER LONG-TERM LIABILITIES ....................... 1,723,674 0 0 0 1,723,674
----------- ----------- ----------- ----------- -----------
TOTAL LONG-TERM LIABILITIES ....................... 2,532,872 (809,198) 0 0 1,723,674
TOTAL LIABILITIES.................................. 76,924,708 (16,910,849) (12,780,746) (15,193,062) 32,040,051
=========== =========== =========== =========== ===========
SHAREHOLDERS EQUITY
PREFERRED & COMMON STOCK @ PAR .................... 339,268 0 0 0 339,268
ADDITIONAL PAID IN CAPITAL ........................ 11,184,756 0 0 0 11,184,756
TREASURY STOCK .................................... (511,204) 0 0 0 (511,204)
NET UNREALIZED HOLDING GAIN (NET OF TAX) .......... 1,703,393 12,272 0 0 1,715,665
RETAINED EARNINGS (DEFICIT) ....................... (2,978,422) 131,056 (310,335) 142,756 (3,014,945)
----------- ----------- ----------- ----------- -----------
TOTAL SHAREHOLDERS EQUITY ........................... 9,737,791 143,328 (310,335) 142,756 9,713,540
TOTAL LIABILITIES & SHLDR. EQUITY ................... 86,662,499 (16,767,521) (13,091,081) (15,050,306) 41,753,591
========== ============ ============ ============ ==========
0 0 (0) (0) (0)
<FN>
(1) See Item 2 to this Form 8-K for a description of the transaction, initially reported on Form 8-K filed June 12, 1996.
(2) See Item 2 to this Form 8-K for a description of the transaction, initially reported on Form 8-K filed June 12, 1996.
(3) See Item 2 to this Form 8-K for a description of the transaction.
</FN>
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U. S. GLOBAL INVESTORS,INC.
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CONSOLIDATED INCOME STATEMENT
UNAUDITED PRO FORMA PRO FORMA PRO FORMA
REVENUES QUARTER ENDED ADJUSTMENTS(1) ADJUSTMENTS(2) ADJUSTMENTS(3) PRO FORMA
MARCH 31, 1996 MAY 28, 1996 JUNE 10, 1996 JUNE 27, 1996 RESULTS
-------------- ------------- -------------- ------------- ----------
MANAGEMENT FEES (NET) .............................. 4,283,302 0 0 0 4,283,302
NET TRANSFER AGENCY FEES ........................... 2,465,659 0 0 0 2,465,659
INVESTMENT INCOME .................................. 2,873,299 65,977(4) 71,018(5) 201,222(7) 3,211,516
OTHER FEES AND INCOME .............................. 1,277,429 0 0 0 1,277,429
GOVERNMENT SECURITY INTEREST INCOME ................ 3,533,037 (724,747) (504,292) (644,673) 1,659,325
GOVERNMENT SECURITY ACCRETION TO PAR ............... 1,211,584 (64,710) (733,637)(6) (224,255) 188,982
----------- ----------- ----------- ----------- -----------
TOTAL REVENUE ...................................... 15,644,310 (723,480) (1,166,911) (667,706) 13,086,213
============ =========== =========== =========== ===========
UNAUDITED PRO FORMA PRO FORMA PRO FORMA
EXPENSES QUARTER ENDED ADJUSTMENTS(1) ADJUSTMENTS(2) ADJUSTMENTS(3) PRO FORMA
MARCH 31, 1996 MAY 28, 1996 JUNE 10, 1996 JUNE 27, 1996 RESULTS
-------------- ------------- ------------- ------------- ------------
TOTAL GENERAL & ADMINISTRATIVE ...................... 8,028,360 0 0 0 8,028,360
DEPRECIATION & AMORTIZATION ......................... 362,672 0 0 0 362,672
INTEREST & FINANCE CHARGES .......................... 95,023 0 0 0 95,023
INTEREST EXPENSE - SEC SOLD TO REPURCHASE ........... 4,419,065 (854,494) (639,209) (810,977) 2,114,385
INTEREST EXPENSE - SUBORDINATED DEBENTURE ........... 263,595 (67,556) (57,497) (73,026) 65,516
----------- ----------- ----------- ----------- ----------
TOTAL EXPENSES ...................................... 13,168,715 (922,050) (696,706) (884,003) 10,665,956
INCOME (LOSS) BEFORE TAX ............................ 2,475,595 198,570 (470,205) 216,297 2,420,257
FEDERAL TAXES ....................................... 893,791 67,514 (159,870) 73,541 874,976
NET INCOME (LOSS) ................................... 1,581,804 131,056 (310,335) 142,756 1,545,281
=========== ========== ========== ========== ==========
PRO FORMA EARNINGS PER SHARE
PRIMARY & FULLY DILUTED ............................. $ 0.24 $ 0.02 ($ 0.04) $ 0.02 $ 0.24
=========== ========== ========== ========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING
PRIMARY & FULLY DILUTED ............................. 6,574,926 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, initially reported on Form 8-K dated June 12, 1996.
(2) See Item 2 to this Form 8-K for a description of the transaction, initially reported on Form 8-K dated June 12, 1996.
(3) See Item 2 to this Form 8-K for a description of the transaction.
(4) Amount represents realized gain on sale of $16.55 million par value government 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.
(5) Amount represents realized loss on sale of $12.195 million par value government 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.
(6) Upon sale of the $12.195 million par value government notes, the remaining $41.53 million par value notes held by the
Company were 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 government 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.
(7) Amount represents realized loss on sale of $14.805 million par value government note of ($23,033) plus accretion of
$224,255 on the note sold that was adjusted retroactive to July 1, 1995 as specified by Article 11 of Regulation S-X.
</FN>