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) NOVEMBER 29, 1996
VIEW TECH, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 0-25940 77-0312442
(STATE OR OTHER JURISDICTION (COMMISSION FILE (I.R.S. EMPLOYER
OF INCORPORATION) NUMBER) IDENTIFICATION NO.)
950 FLYNN ROAD, CAMARILLO, CALIFORNIA 93012
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)(ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (805) 482-8277
NOT APPLICABLE
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
EXPLANATORY NOTE: Pursuant to Item 7, this Form 8-KA amends Item 7 of View
Tech, Inc.'s ("View Tech") Current Report on Form 8-K filed on December 4, 1996,
to provide the financial statements of the business acquired and the pro forma
financial information required by Item 7. The remaining Items have not been
amended and have not been restated in this Form 8-K/A.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) Financial Statements of business acquired.
1. The audited financial statements of USTeleCenters, Inc. for
the twelve months ended June 30, 1996 and 1995, required by
this Item 7(a) are incorporated herein by reference to
financial statements set forth in the Registration Statement
on Form SB-2 (SEC File No. 333-19597) for View Tech, dated
January 31, 1997.
2. The unaudited financial statements of USTeleCenters, Inc.
for the three months ended September 30, 1996 and 1995
required by this Item 7(a) are incorporated herein by
reference to financial statements set forth in the
Registration Statement on Form SB-2 (SEC File No. 333-19597)
for View Tech, dated January 31, 1997.
(b) Pro Forma Financial Information (unaudited).
1. Unaudited Pro Forma Condensed Combined Statements of
Operations for the year ended June 30, 1996 and 1995 and
unaudited pro forma combined Balance Sheet as of June 30,
1996 and 1995 are incorporated herein by reference to the
pro forma combined financial data set forth in the
Registration Statement on Form S-4 (SEC File No. 333-13459)
for View Tech, dated November 5, 1996.
2. Unaudited Pro Forma Condensed Combined Statements of
Operations for the three months ended September 30, 1996 and
1995 and unaudited pro forma condensed combined Balance
Sheets as of September 30, 1996 and 1995, filed herewith.
(c) Exhibits
20.1 Joint Proxy Statement/View Tech Proxy Statement/Prospectus
for View Tech, Inc. and USTeleCenters, Inc. included with
View Tech's registration statement on Form S-4, dated
November 5, 1996, (SEC File No. 333-13459).
21.1 Agreement and Plan of Merger among View Tech, Inc., View
Tech Acquisition, Inc. and USTeleCenters,Inc. dated as of
September 5, 1996 (incorporated herein by reference to
Appendix A to the Joint Proxy Statement/View Tech Proxy
Statement/Prospectus included in View Tech's Registration
Statement on Form S-4 (Sec File No. 333-13459) for View
Tech, dated November 5, 1996).
23.1 Consent of Carpenter Kuhen & Sprayberry, filed herewith.
23.2 Consent of Arthur Andersen LLP, filed herewith.
99.1 Press release announcing completion of the Merger
(previously filed on December 4, 1996).
2
VIEW TECH, INC.
PROFORMA CONDENSED COMBINED BALANCE SHEET
SEPTEMBER 30, 1996
(UNAUDITED)
Pro Forma Pro Forma
View Tech UST Adjustments Combined
----------- ----------- ----------- -----------
ASSETS:
Current Assets:
Cash and cash equivalents..................... $ 1,155,565 $ 2,300 $ -- $ 1,157,865
Accounts receivable, net...................... 6,141,682 3,767,025 (1,000,000)(6) 8,908,707
Notes receivable.............................. 1,008,722 -- -- 1,008,722
Inventory..................................... 1,264,398 506,509 -- 1,770,907
Other current assets.......................... 1,096,692 272,872 -- 1,369,564
----------- ----------- ----------- -----------
Total Current Assets........................ 10,667,059 4,548,706 (1,000,000) 14,215,765
Property and equipment, net..................... 946,251 1,791,207 -- 2,737,458
Deferred charges - goodwill, net................ 1,654,203 -- -- 1,654,203
Other assets.................................... 101,343 52,003 -- 153,346
----------- ----------- ----------- -----------
$13,368,856 $ 6,391,916 $(1,000,000) $18,760,772
=========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts payable.............................. $ 4,664,593 $ 1,838,816 $ -- $ 6,503,409
Note Payable - vendor......................... -- 197,672 -- 197,672
Note payable.................................. 220,000 1,000,000 (1,000,000)(6) 220,000
Current portion of long-term debt............. -- 1,699,983 -- 1,699,983
Current portion of amounts due to landlords... -- 143,707 -- 143,707
Customer deposits............................. -- 187,121 -- 187,121
Other current liabilities..................... 576,703 890,189 1,500,000 (3) 2,966,892
----------- ----------- ----------- -----------
Total Current Liabilities................... 5,461,296 5,957,488 500,000 11,918,784
----------- ----------- ----------- -----------
Long-Term Liabilities........................... 223,181 596,834 -- 820,015
----------- ----------- ----------- -----------
Stockholders' Equity:
Common stock, par value $0.01................. 30,931 90,592 (68,182)(2) 53,341
Common stock subscribed, net.................. 1,390,102 -- -- 1,390,102
Paid-in capital............................... 6,768,921 1,352,915 68,182 (2) 8,190,018
Shareholder distributions..................... -- (2,027,674) 2,027,674 (2) --
Retained earnings (deficit)................... (505,575) 421,761 (3,527,674)(2)(3) (3,611,488)
----------- ----------- ----------- -----------
7,684,379 (162,406) (1,500,000) 6,021,973
----------- ----------- ----------- -----------
$13,368,856 $ 6,391,916 $(1,000,000) $18,760,772
=========== =========== =========== ===========
See notes to the pro forma condensed combined financial statements.
3
VIEW TECH, INC.
PROFORMA CONDENSED COMBINED BALANCE SHEET
SEPTEMBER 30, 1995
(UNAUDITED)
Pro Forma Pro Forma
View Tech UST Adjustments Combined
----------- ------------ ------------ -------------
ASSETS:
Current Assets:
Cash and cash equivalents...................... $3,846,379 $ -- $ -- $ 3,846,379
Accounts receivable, net....................... 2,481,517 3,110,135 -- 5,591,652
Inventory...................................... 1,029,882 819,000 -- 1,848,882
Other current assets........................... 291,960 247,168 -- 539,128
---------- ----------- ----------- -----------
Total Current Assets......................... 7,649,738 4,176,303 -- 11,826,041
Property and equipment, net...................... 238,662 2,101,969 -- 2,340,631
Other assets..................................... 105,898 57,719 -- 163,617
---------- ----------- ----------- -----------
$7,994,298 $ 6,335,991 $ -- $14,330,289
========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts payable............................... $2,359,194 $ 2,274,021 $ -- $ 4,633,215
Current portion of long-term debt.............. -- 2,768,455 -- 2,768,455
Current portion of amounts due to landlords.... -- 240,314 -- 240,314
Other current liabilities...................... 232,235 1,346,913 1,500,000 (3) 3,079,148
---------- ----------- ----------- -----------
Total Current Liabilities.................... 2,591,429 6,629,703 1,500,000 10,721,132
---------- ----------- ----------- -----------
Long-Term Liabilities............................ 21,146 1,025,782 -- 1,046,928
---------- ----------- ----------- -----------
Stockholders' Equity:
Common stock, par value $0.01.................. 28,625 89,947 (67,723)(2) 50,849
Paid-in capital................................ 5,243,620 1,369,310 46,723 (2) 6,659,653
Treasury stock, at cost........................ -- (21,000) 21,000 (2) --
Shareholder distributions...................... -- (2,027,674) 2,027,674 (2) --
Retained earnings (deficit).................... 109,478 (730,077) (3,527,674)(2)(3) (4,148,273)
---------- ----------- ----------- -----------
5,381,723 (1,319,494) (1,500,000) 2,562,229
---------- ----------- ----------- -----------
$7,994,298 $ 6,335,991 $ -- $14,330,289
========== =========== =========== ===========
See notes to the pro forma condensed combined financial statements.
4
VIEW TECH, INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996
(UNAUDITED)
Three Months Ended September 30, 1996
-----------------------------------------
Pro Forma
View Tech UST Combined
------------ ----------- ------------
Revenues:
Product sales and services........... $5,364,952 $ 637,027 $ 6,001,979
Agency commissions................... -- 4,016,505 4,016,505
---------- ---------- -----------
5,364,952 4,653,532 10,018,484
---------- ---------- -----------
Operating Expenses:
Costs of goods sold.................. 3,786,229 1,030,912 4,817,141
Sales and marketing.................. 660,931 2,119,503 2,780,434
General and administrative........... 1,054,291 897,900 1,952,191
---------- ---------- -----------
5,501,451 4,048,315 9,549,766
---------- ---------- -----------
Income (Loss) from Operations.......... (136,499) 605,217 468,718
Other Income (expenses)................ 14,120 (81,501) (67,381)
---------- ---------- -----------
Income (Loss) before Income Taxes...... (122,379) 532,716 401,337
Provision for Income Taxes(5).......... 48,036 (62,000) (13,964)
---------- ---------- -----------
Net Income (Loss)...................... $ (74,343) $ 461,716 $ 387,373
========== ========== ===========
Earnings (Loss) Per Share.............. $ (.03) $ .21 $ .06
========== ========== ===========
Weighted Average Shares
Outstanding (4)........................ 2,959,248 2,240,976 6,288,305
========== ========== ===========
See notes to the pro forma condensed combined financial statements.
5
VIEW TECH, INC.
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
Three Months Ended September 30, 1995
------------------------------------------
Pro Forma
View Tech UST Combined
------------ ------------ -----------
Revenues:
Product sales and services........... $1,689,673 $1,003,614 $2,693,287
Agency commissions................... -- 3,723,403 3,723,403
---------- ---------- ----------
1,689,673 4,727,017 6,416,690
---------- ---------- ----------
Operating Expenses:
Costs of goods sold.................. 1,160,358 1,121,031 2,281,389
Sales and marketing.................. 245,496 2,061,880 2,307,376
General and administrative........... 585,993 963,905 1,549,898
---------- ---------- ----------
1,991,847 4,146,816 6,138,663
---------- ---------- ----------
Income (Loss) from Operations.......... (302,174) 580,201 278,027
Other Income (expenses)................ 56,216 (119,307) (63,091)
---------- ---------- ----------
Income (Loss) before Income Taxes...... (245,958) 460,894 214,936
Provision for Income Taxes (5)......... 90,607 (30,900) 59,707
---------- ---------- ----------
Net Income (Loss)...................... $ (155,351) $ 429,994 $ 274,643
========== ========== ==========
Earnings (Loss) Per Share.............. $ (.05) $ .19 $ .05
========== ========== ==========
Weighted Average Shares
Outstanding(4)......................... 2,858,750 2,240,979 5,571,055
========== ========== ==========
See notes to the pro forma condensed combined financial statements.
6
VIEW TECH, INC.
NOTES TO PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
(UNAUDITED)
1. GENERAL
-------
The pro forma data presented herein includes the effects of the merger between
View Tech, Inc. ("View Tech") and USTeleCenters, Inc. ("UST") which was
consummated on November 29, 1996. Such pro forma information is derived from the
unaudited balance sheets and statements of operations of View Tech and UST as of
September 30, 1996 and 1995 and for the three months then ended.
2. STOCKHOLDERS' EQUITY
--------------------
The pro forma adjustments to common stock, paid in capital and treasury stock as
of September 30, 1996 and 1995, reflect the issuance of 2,240,976 shares of View
Tech common stock for all of the outstanding shares of UST common stock,
representing a Conversion Ratio of 0.24534 View Tech share for each share of UST
common stock. Shareholder distributions shown on the pro forma condensed
combined balance sheets for UST as of September 30, 1996 and 1995 have been
reflected in the combined companies retained earnings since UST converted to a C
corporation upon closing of the Merger.
3. MERGER EXPENSES
---------------
Under the pooling-of-interests method of accounting, costs associated with the
merger of View Tech and UST are treated as an expense of the combined company.
The accompanying pro forma condensed combined statements of operations do not
reflect the expense associated with the Merger, which are estimated to be
approximately $2.5 million pre-tax and $1.5 million after-tax, that will be
recorded in the first period that financial statements of the combined companies
are presented, since such expenses are non-recurring. The after-tax effect of
these expenses are, however, reflected in the accompanying pro forma condensed
combined balance sheets as of September 30, 1996 and 1995, respectively, as a
liability and as a reduction to retained earnings. Merger expenses consist
primarily of professional fees including, investment advisory, legal and
accounting fees. The tax effect of the Merger expenses was calculated using
View Tech's effective combined federal and state income tax rate of
approximately 40%.
4. WEIGHTED AVERAGE SHARES OUTSTANDING
-----------------------------------
The weighted average number of shares shown in the pro forma combined statements
of operations for the three months ended September 30, 1996 and 1995 for UST
represents the number of shares of View Tech common stock issued to the UST
stockholders in connection with the Merger. The weighted average number of
shares shown in the for View Tech for the three months ended September 30, 1996
and 1995 represents the actual weighted average shares outstanding for View Tech
at such dates.
7
5. INCOME TAXES
------------
UST was an S corporation prior to the merger. As an S corporation, UST was
generally not subject to federal income taxes. Instead the stockholders were
taxed on their respective share of UST income at the stockholder's individual
federal and state income tax rates. Accordingly, there was no provision for
federal income taxes recorded by UST for the three months ended September 30,
1996 and 1995. Effective with the closing of the merger, UST converted to a C
corporation. Net income for the three months ended September 30, 1996 and 1995
include a provision for income taxes to reflect income taxes as if UST had been
combined with View Tech during such periods.
6. NOTE PAYABLE
------------
Represents the elimination of a note receivable/payable balance between View
Tech and UST as of September 30, 1996.
8
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.
VIEW TECH, INC.
February 14, 1997 /s/ William M. McKay
- ----------------- ---------------------
Date William M. McKay
Chief Financial Officer
9