SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (earliest event reported): September 30, 1996
GDC GROUP, INC.
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(Exact name of registrant as specified in its charter)
Colorado 0-15891 84-0891674
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification number)
incorporation)
1580 Lincoln St., Suite 900, Denver, Colorado 80203
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(Address of Principal Executive Offices)
Registrant's telephone number, including area code (303) 840-6585
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DK Industries, Inc., 1580 Lincoln St., Suite 1125, Denver, Colorado 80203
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(Former name and former address of registrant)
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ITEM 1. CHANGES IN CONTROL OF REGISTRANT
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None
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
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On September 30, 1996, GDC Holdings Corporation ("GDCH"), a wholly
owned subsidiary of Registrant, completed a reorganization between it and TVIES,
Inc. ("TVIES"), by which TVIES became a wholly owned subsidiary of GDCH. The
acquisition was made from Haraldur Karlsson, 4010 Pecan Park Lane, Kingswood,
TX, sole shareholder, director and president of TVIES. Consideration for the
acquisition was 33,333 shares of restricted common stock of the Registrant,
which represented .006% of the Registrant's issued and outstanding shares.
TVIES became a 100% owned subsidiary of GDCH.
TVIES provides hazardous and industrial waste treatment and volume
reduction services through the use of a proprietary soil washing process for a
varied scope of contaminated soils, ranging from low level radioactive material
to hydrocarbon contaminated soils. TVIES services primarily apply to
remediation of land, or reclamation and development of industrial sites.
Mr. Karlsson, the former sole stockholder of TVIES, Inc., was also,
from June 1, 1996 through December 31, 1996, an employee of GDC Enviro-
Solutions, Inc., a wholly owned subsidiary of GDCH.
The information set forth in this Item 2 is a summary and is qualified
in its entirety by the information contained in the Reorganization Plan dated
September 30, 1996, which is attached as Exhibit 2.1 and incorporated herein by
this reference.
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
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None
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
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None.
ITEM 5. OTHER EVENTS
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None
ITEM 6. RESIGNATION OF REGISTRANT'S DIRECTORS
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John E. McConnaughy, Jr. resigned as a Director of registrant on July
10, 1997. Kathleen Elnaggar resigned as a Director of registrant on August 11,
1997.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(a) Pro Forma Financial Information.
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Pro Forma Condensed Combined Balance Sheet for the Registrant at
9/30/96 (Unaudited), and Pro Forma Condensed Combined Statements of Operations
for years ended 9/30/96 and 9/30/95 (Unaudited), see F-1 through F-3 attached.
NOTE: Audited Financial Statements for the business acquired,
TVIES, Inc., are available from the Registrant but are not material and are not
included for the period from inception to 9/30/96.
(b) Exhibits.
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(2.1) Reorganization Plan and List of Schedules.
ITEM 8. CHANGE IN FISCAL YEAR
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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.
GDC GROUP, INC.
Date: Oct. 24, 1997 By: /s/ James W. Muzzy
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James W. Muzzy, Vice President,
Principal Financial Officer
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GDC Group, Inc.
Pro Forma Condensed Combined Balance Sheet
SEPTEMBER 30, 1996 (Unaudited):
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GDC Group, Inc.
Pro Forma
GDC Group, Pro Forma Condensed
Inc. TVIES Entries Combined
---------- --------- --------- --------------
ASSETS
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Current Assets:
Cash & cash equivalents $1,298,361 $1,298,361
Accounts receivable, trade 412,248 412,248
Other receivables 329,168 329,168
Inventory 177,234 177,234
Prepaid expenses 195,561 195,561
Other current assets 4,936 4,936
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Total Current Assets 2,417,508 0 0 2,417,508
Property & equipment, net 7,129,967 $525,924 7,655,891
Debt restructure costs, net 922,501 922,501
Other assets 161,675 161,675
Due from TVIES, Inc. 471,050 (C) ($471,050) 0
----------- --------- --------- ----------
Total Assets $11,102,701 $525,924 $471,050 $11,157,575
=========== ========= ========= ===========
LIABILITIES & STOCKHOLDERS' EQUITY
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Current Liabilities:
Current portion, long-term debt $4,254,724 $4,254,724
Line of credit payable 241,726 241,726
Accounts payable, trade 2,718,932 2,718,932
Accrued expenses 1,036,881 1,036,881
Due to GDC Group, Inc. 471,050 (C) (471,050) 0
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Total Current Liabilities 8,252,263 471,050 (471,050) 8,252,263
Long-term debt, net of current 95,552 95,552
Deferred income taxes 82,145 82,145
Stockholders' Equity
Common stock par value 111,901 10 (A) (10) 112,568
(B) 667
Additional paid-in capital 3,534,311 130,990 (A) (130,990) 3,588,518
(B) 32,666
(D) 21,541
Retained earnings (973,471) (76,126)(A) 76,126 (973,471)
----------- --------- --------- ----------
Total Stockholders' Equity 2,672,741 54,874 0 2,727,615
----------- --------- --------- ----------
Total Liabilities &
Stockholders' Equity $11,102,701 $525,924 ($471,050) $11,157,575
=========== ========= ========= ===========
Pro Forma Entries:
(A) Capital structure of TVIES is eliminated.
(B) 33,333 shares of GDC common stock is issued @ $1 per share.
(C) Intercompany balances are eliminated between GDC and TVIES.
(D) Additional paid-in capital is adjusted to the extent that assets acquired
exceed liabilities assumed and common stock issued.
F-1
GDC Group, Inc.
Pro Forma Condensed Combined Statement of Operations
Year Ended September 30, 1996 (Unaudited):
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GDC Group, Inc.
Pro Forma
GDC Group, Pro Forma Condensed
Inc. TVIES Entries Combined
---------- --------- --------- ---------------
Contact revenue $ 6,493,508 $ 90,000 $ 6,583,508
Cost of contact revenue 6,282,190 95,221 6,377,411
----------- --------- --------- -----------
Gross Profit 211,318 (5,221) 0 206,097
Selling, general & admin. exp. 3,363,292 70,905 3,434,197
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Net Operating Income (Loss) (3,151,974) (76,126) 0 (3,228,100)
Other Income (Expenses):
Interest expense (934,041) (934,041)
Miscellaneous, net (283,401) (283,401)
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Total Other Income (Expense) (1,217,442) 0 0 (1,217,442)
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Income (Loss) Before Taxes (4,369,416) (76,126) 0 (4,445,542)
Income (Taxes) Credit 631,975 631,975
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Net Income (Loss) ($3,737,441) ($76,126) $0 ($3,813,567)
=========== ========= ========= ===========
Pro forma income (loss) per share ($2.146)
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Pro forma weighted average shares outstanding 1,776,945
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F-2
GDC Group, Inc.
Pro Forma Condensed Combined Statement of Operations
Year Ended September 30, 1995 (Unaudited):
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GDC Group, Inc.
Pro Forma
GDC Group, Pro Forma Condensed
Inc. TVIES Entries Combined
---------- --------- --------- ---------------
Contract revenue $8,628,165 $8,628,165
Cost of contract revenue 5,544,236 $6,971 5,551,207
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Gross Profit 3,083,929 (6,971) 0 3,076,958
Selling, general & admin. exp. 2,394,765 0 2,394,765
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Operating Income (Loss) 689,164 (6,971) 0 682,193
Other Income (Expenses):
Interest expense (563,188) (563,188)
Miscellaneous, net (75,557) (75,557)
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Total Other Income (Expenses) (638,745) 0 0 (638,745)
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Income (Loss) Before Taxes
and Cumulative Effect 50,419 (6,971) 0 43,448
Income (Taxes) Benefit (20,362) (20,362)
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Income (Loss) Before
Cumulative Effect of Change
in Accounting Principle 30,057 (6,971) 0 23,086
Cumulative Effect in Prior Years
Of Changing To Different
depreciation method 298,672 298,672
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Net Income (Loss) $328,729 ($6,971) $0 $321,758
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Pro forma income (loss) per share $0.247
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Pro forma weighted average shares outstanding 1,304,720
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F-3