SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
AMENDMENT NO. 1
TO CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
Date of Report (Date of earliest event reported):
October 15, 1999
RESPONSE USA, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 0-20770 52-1441922
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
3 Executive Campus, 2nd Floor South
CHERRY HILL, NJ 08002
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(Address of principal executive offices)
Registrant's telephone number, including area code:
(856) 661-0700
11-H Princess Road
LAWRENCEVILLE, NEW JERSEY 08648
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(Former address if changed since last report)
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
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As reported in Form 8-K dated September 30, 1999 and filed with the
Securities and Exchange Commission on October 15, 1999 by Response USA, Inc.
(the "Company"), the Company sold the stock of two of its wholly owned
subsidiaries, United Security Systems, Inc. and The Jupiter Group, Inc. d/b/a
Triple A Patrol to Vector Security, Inc. (the "Sale Transaction"). This Form
8-K/A provides pro forma financial information required under Item 7 of Form
8-K. Item 7 to the Form 8-K is hereby amended and restated in its entirety as
provided below.
The pro forma adjustments are based on available information and
upon certain assumptions that management believes are reasonable under the
circumstances. The unaudited pro forma financial statements and accompanying
notes should be read in conjunction with the historical Consolidated
Financial Statements of the Company including the notes thereto, and other
financial information pertaining to the Company. The unaudited pro forma
financial statements do not purport to represent what the actual results of
operations or the actual financial position would have been if the Sale
Transaction and the use of related proceeds had, in fact, occurred on such
assumed dates or to project the Company's results of operations or financial
position for any future period or date. The unaudited pro forma consolidated
financial statements only reflect effects from the Sale Transaction and the
use of related proceeds.
The Private Securities Litigation Reform Act of 1995 (the "Reform Act")
provides a "safe harbor" for forward-looking statements to encourage companies
to provide prospective information so long as those statements are identified as
forward-looking and are accompanied by meaningful cautionary statements
identifying important factors that would cause actual results to differ
materially from those discussed in the statement. The Company desires to take
advantage of the "safe harbor" provisions of the Reform Act. Except for the
historical information contained herein, the matters discussed in this Form
8-K/A are forward-looking statements, which involve risks and uncertainties.
Although the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it can give no
assurance that its expectations will be achieved. Important factors that can
cause actual results to differ materially from the Company's expectations are
disclosed in conjunction with the forward-looking statements or elsewhere
herein.
The following unaudited pro forma consolidated statements of operations
for the year ended June 30, 1999 and the three months ended September 30, 1999
give effect to the Sale Transaction and the use of the proceeds received from
such sale to acquire and
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retire 747,582 shares of treasury stock and to cancel 437,500 shares of Common
Stock originally held in escrow, as if such events had been completed at July 1,
1998. The pro forma information is based on the historical financial statements
of the Company giving effect to the adjustments described in the accompanying
notes to the unaudited pro forma financial information.
THESE PRO FORMA STATEMENTS OF OPERATIONS MAY NOT BE INDICATIVE OF THE
RESULTS THAT ACTUALLY WOULD HAVE OCCURRED IF THE SALE TRANSACTION HAD OCCURRED
ON JULY 1, 1998.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(a) Financial Statements of Business Acquired: N/A.
(b) Pro Forma Financial Information:
Response USA, Inc. and Subsidiaries Pro Forma Consolidated Statement
of Operations for the Year Ended June 30, 1999 (Unaudited)
Response USA, Inc. and Subsidiaries Pro Forma Consolidated Statement
of Operations for the Three Months Ended September 30, 1999
(Unaudited)
Notes to Unaudited Pro Forma Consolidated Financial Statements
(c) Exhibits:
See Item 7(b) above.
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RESPONSE USA, INC. AND SUBSIDIARIES
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UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENT OF OPERATIONS
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FOR THE YEAR ENDED JUNE 30, 1999
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PRO FORMA
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HISTORICAL ADJUSTMENTS ADJUSTED
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OPERATING REVENUES
Product sales $4,778,545 (3,859,335) {a} $919,210
Monitoring and service 19,786,538 (12,123,521) {a} $7,663,017
Security patrol 2,864,570 (2,864,570) {a} $0
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27,429,653 (18,847,426) $8,582,227
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COST OF REVENUES
Product sales 4,474,744 (3,577,210) {a} $897,534
Monitoring and service 5,959,620 (3,973,790) {a} $1,985,830
Security patrol 2,236,396 (2,236,396) {a} $0
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12,670,760 (9,787,396) $2,883,364
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GROSS PROFIT 14,758,893 (9,060,030) $5,698,863
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OPERATING EXPENSES
Selling, general and administrative 14,233,218 (7,686,978) {a} $6,546,240
Compensation - Employment contracts 437,500 0 $437,500
Depreciation and amortization 7,998,630 (5,289,620) {a} $2,709,010
Nonrecurring charges 208,501 (9,780) {a} $198,721
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22,877,849 (12,986,378) $9,891,471
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LOSS FROM OPERATIONS (8,118,956) 3,926,348 ($4,192,608)
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OTHER INCOME/(EXPENSE)
Interest expense, net (4,116,332) 2,998,930 {a} ($1,117,402)
Gain on sale of security division 0 12,489,532 {b} $12,489,532
Loss on marketable securities 0 0 $0
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(4,116,332) 15,488,462 $11,372,130
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INCOME (LOSS) BEFORE TAXES (12,235,288) 19,414,810 $7,179,522
Income tax expense (27,548) 21,315 {a}
(249,791){c} ($256,024)
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INCOME (LOSS) BEFORE EXTRAORDINARY ITEM (12,262,836) 19,186,334 $6,923,498
EXTRAORDINARY ITEM
Loss on debt extinguishment (2,567,806) (3,092,740){e} ($5,660,546)
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NET INCOME (LOSS) (14,830,642) 16,093,594 $1,262,952
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Income (loss) per common share - Basic
Income (loss) before extraordinary item ($1.66) $1.12
Extraordinary item ($0.35) ($0.91)
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Net income (loss) ($2.01) $0.21
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Weighted average number of shares outstanding 7,382,618 (1,185,082) {g} 6,197,536
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Income (loss) per common share - Diluted
Income (loss) before extraordinary item ($1.66) $1.12
Extraordinary item ($0.35) ($0.91)
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Net income (loss) ($2.01) $0.21
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Weighted average number of shares outstanding 7,382,618 (1,185,082) {g} 6,197,536
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RESPONSE USA, INC. AND SUBSIDIARIES
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UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENT OF OPERATIONS
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FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
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PRO FORMA
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HISTORICAL ADJUSTMENTS ADJUSTED
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OPERATING REVENUES
Product sales $1,325,609 (1,084,517) {a} $241,092
Monitoring and service 5,626,108 (3,121,546) {a} $2,504,562
Security patrol 871,294 (871,294) {a} $0
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7,823,011 (5,077,357) $2,745,654
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COST OF REVENUES
Product sales 1,204,010 (1,014,500) {a} $189,510
Monitoring and service 1,589,403 (951,293) {a} $638,110
Security patrol 706,616 (706,616) {a} $0
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3,500,029 (2,672,409) $827,620
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GROSS PROFIT 4,322,982 (2,404,948) $1,918,034
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OPERATING EXPENSES
Selling, general and administrative 4,028,020 (1,971,520) {a} $2,056,500
Compensation - Employment contracts 0 0 $0
Depreciation and amortization 2,183,425 (1,255,757) {a} $927,668
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6,211,445 (3,227,277) $2,984,168
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LOSS FROM OPERATIONS (1,888,463) 822,329 ($1,066,134)
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OTHER INCOME/(EXPENSE)
Interest expense, net (1,519,967) 895,589 {a} ($624,378)
Gain on sale of security division 17,354,099 (17,354,099) {d} $0
Loss on marketable securities (25,000) 0 ($25,000)
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15,809,132 (16,458,510) ($649,378)
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INCOME (LOSS) BEFORE TAXES 13,920,669 (15,636,181) ($1,715,512)
Income tax expense (704,200) 506,887 {a} ($197,313)
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INCOME (LOSS) BEFORE EXTRAORDINARY ITEM (13,216,469) (15,129,294) ($1,912,825)
EXTRAORDINARY ITEM
Loss on debt extinguishment (4,058,915) 4,058,915 {f} $0
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NET INCOME (LOSS) 9,157,554 (11,070,379) ($1,912,825)
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Income (loss) per common share - Basic
Income (loss) before extraordinary item $1.58 ($0.27)
Extraordinary item ($0.49) $0.00
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Net income (loss) $1.09 ($0.27)
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Weighted average number of shares outstanding 8,351,012 (1,185,082) {g} 7,165,930
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Income (loss) per common share - Diluted
Income (loss) before extraordinary item $1.58 ($0.27)
Extraordinary item ($0.49) $0.00
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Net income (loss) $1.09 ($0.27)
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Weighted average number of shares outstanding 8,351,512 (1,185,082) {g} 7,166,430
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RESPONSE USA, INC. AND SUBSIDIARIES
NOTES TO THE UNAUDITED PRO FORMA FINANCIAL INFORMATION
FOR THE YEAR ENDED JUNE 30, 1999 AND THE THREE MONTHS ENDED SEPTEMBER 30, 1999
(a) To eliminate current period activity for the security division.
(b) To record the gain on sale of the security division net of
amortization of the monitoring contracts for the period of July 1, 1998
to September 30, 1999.
(c) To record alternative minimum tax related to the gain on the sale of the
security division.
(d) To eliminate the gain on the sale of the security division.
(e) To write off the debt issue costs net of the amortization of debt issue
costs for the period of July 1, 1998 to September 30, 1999 as loss on
debt extinguishment.
(f) To eliminate the loss on debt extinguishment.
(g) To adjust the weighted average number of shares by the shares
repurchased and retired in connection with the Sale Transaction.
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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.
Response USA, Inc.
Dated: December , 1999 By:
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Donna M. Dorris,
Chief Financial Officer
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