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 (Date of earliest event reported): September 2, 2003
KOGER EQUITY, INC.
(Exact name of registrant as specified in its charter)
FLORIDA
(State or other jurisdiction of incorporation)
1-9997 59-2898045
(Commission File Number) (IRS Employer Identification No.)
225 NE Mizner Boulevard, Suite 200
Boca Raton, Florida 33432
(Address of principal executive offices) (Zip Code)
(561) 395-9666
(Registrant's telephone number, including area code)
N/A
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(Former name or former address, if changed since last report)
Item 5. Other Events.
(a) The historical ratio of earnings to fixed charges for the periods indicated
is as follows:
Six Months
Ended June 30, Years Ended December 31,
------------------------ -------------------------------------------------------------
2003 2002 2002 2001 2000 1999 1998
----------- ------------ ------------ ------------ ------------ ------------ ----------
Earnings:
Net income 7,721 9,488 16,423 73,223 27,153 36,586 29,602
Adjustments:
Income taxes (21) 94 (413) 684 (21) 187 956
Minority interest - 20 20 1,044 1,156 1,174 139
Equity in earnings of unconsolidated subsidiary - - - (81) (645) (1,099) (1,696)
Interest expense 14,045 11,236 23,252 25,204 27,268 21,893 16,616
Amortization of loan costs 725 588 1,893 908 888 836 1,069
Distributed income of equity investees - - 2,750 - 438 448 515
Interest capitalized - - - (207) (1,059) (3,343) (2,974)
Gain on sale of assets (589) (1) (21) (39,189) (6,015) (3,851) (35)
----------- ------------ ------------ ------------ ------------ ------------ ----------
Earnings 21,881 21,425 43,904 61,586 49,163 52,831 44,192
=========== ============ ============ ============ ============ ============ =========
Fixed Charges:
Interest expense 14,045 11,236 23,252 25,204 27,268 21,893 16,616
Interest capitalized - - - 207 1,059 3,343 2,974
Amortization of deferred loan costs 725 588 1,893 908 888 836 1,069
Preferred stock dividends - - - - - - -
----------- ------------ ------------ ------------ ------------ ------------ ---------
Total Fixed Charges 14,770 11,824 25,145 26,319 29,215 26,072 20,659
=========== ============ ============ ============ ============ ============ =========
Ratio of Earnings to Fixed Charges 1.48 1.81 1.75 2.34 1.68 2.03 2.14
=========== ============ ============ ============ ============ ============ =========
For purposes of calculating the above ratios, earnings represent net income from
our consolidated statements of operations, as adjusted for fixed charges and
dividends on preferred stock. Fixed charges represent interest expense from our
consolidated statements of operations. The ratios are based solely on historical
financial information and no pro forma adjustments have been made thereto.
(b) Information about securities underlying Koger Equity, Inc.'s outstanding
stock options at December 31, 2002 is as follows:
Number of Securities to be Weighted Average Number of Securities
Issued upon Exercise of Exercise Price of Remaining Available
Plan Category Outstanding Options Outstanding Options for Future Issuance
--------------------------------------------- ---------------------------------- --------------------- -------------------
Equity Compensation Plans
Approved by Stockholders 449,113 19.50 1,161,200
Equity Compensation Plans
Not Approved by Stockholders 1,704,894 (1) 17.14 275,406 (2)
Total 2,154,007 17.60 1,436,606
(1) Includes the following options, all of which were granted at an exercise
price equal to the closing market price on the date of grant with a term of
ten years:
1. Options to purchase 1,525,000 shares granted to certain officers in
connection with their initial employment with the Company. These grants are
summarized as follows:
Number of Exercise Date of
Officer Title Options Price Grant Vesting
------------------------------- ------------------------------------------- ------------ ----------------- --------
Thomas J. Crocker Chief Executive Officer 700,000 $16.0625 February 17, 2000 67%
Robert E. Onisko Chief Financial Officer 300,000 16.0625 February 17, 2000 67%
Thomas C. Brockwell Senior Vice President 200,000 17.5625 June 14, 2000 67%
Christopher L. Becker Senior Vice President 200,000 17.5625 June 14, 2000 67%
David B. Hiley Former Chief Financial Officer 125,000 22.8125 February 18, 1998 100%
2. Options to purchase 30,294 shares granted to lower echelon employees.
3. Options to purchase 44,000 shares granted in 1997 to the then outside
directors. These grants are summarized as follows:
Number of Exercise Date of
Title Options Price Grant Vesting
------------------- ---------- ---------------- ------------------- -------------
D. Pike Aloian Director 4,000 $19.8125 August 19, 1997 100%
Benjamin C. Bishop, Jr. Director 4,000 19.8125 August 19, 1997 100%
Irvin H. Davis Former Director 4,000 19.8125 August 19, 1997 100%
David B. Hiley Director 4,000 19.8125 August 19, 1997 100%
John R.S. Jacobsson Former Director 4,000 19.8125 August 19, 1997 100%
G. Christian Lantzsch Former Director 4,000 19.8125 August 19, 1997 100%
William L. Mack Former Director 4,000 19.8125 August 19, 1997 100%
Lee S. Neibart Former Director 4,000 19.8125 August 19, 1997 100%
Edward Scheetz Former Director 4,000 19.8125 August 19, 1997 100%
George F. Staudter Director 4,000 19.8125 August 19, 1997 100%
S.D. Stoneburner Former Director 4,000 19.8125 August 19, 1997 100%
4. Options to purchase 80,600 shares granted pursuant to a non-statutory stock
option plan available to all employees of the Company.
5. Options to purchase 25,000 shares granted to the Company's outside legal
counsel and assistant secretary. Harold F. McCart, Jr. was granted this
option on May 19, 1998 at an exercise price of $21.25. This option is fully
vested.
(2) Includes the following options available for grant at a exercise price
equal to at least the closing market price on the date of grant for a term
not to exceed ten years:
1. Options to purchase up to 119,706 shares available for grant pursuant to an
option plan available to lower echelon employees.
2. Options to purchase up to 155,700 shares available for grant pursuant to a
non-statutory stock option plan available for all employees of the Company.
This plan expires on November 18, 2006. The Company's Compensation
Committee has plenary authority to grant options under this plan subject to
any conditions it may determine except for option price and term.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
(12) Statements regarding Computation of Ratios.
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, thereunto duly authorized.
KOGER EQUITY, INC.
Dated: September 2, 2003 By: /s/ Steven A. Abney
___________________
Steven A. Abney
Vice President, Finance and Chief
Accounting Officer
(Principal Financial Officer)
Koger Equity, Inc.
EXHIBIT INDEX
Exhibit No. Description
---------- -----------
12 Statements regarding Computation of Ratios.
EXHIBIT 12
KOGER EQUITY, INC.
Ratio of Earnings to Fixed Charges
(In Thousands except Ratios)
Six Months
Ended June 30, Years Ended December 31,
---------------------------------------------------------------------------------------
2003 2002 2002 2001 2000 1999 1998
----------- ------------ ------------ ------------ ------------ ------------ ----------
Earnings:
Net income 7,721 9,488 16,423 73,223 27,153 36,586 29,602
Adjustments:
Income taxes (21) 94 (413) 684 (21) 187 956
Minority interest - 20 20 1,044 1,156 1,174 139
Equity in earnings of unconsolidated subsidiary - - - (81) (645) (1,099) (1,696)
Interest expense 14,045 11,236 23,252 25,204 27,268 21,893 16,616
Amortization of loan costs 725 588 1,893 908 888 836 1,069
Distributed income of equity investees - - 2,750 - 438 448 515
Interest capitalized - - - (207) (1,059) (3,343) (2,974)
Gain on sale of assets (589) (1) (21) (39,189) (6,015) (3,851) (35)
----------- ------------ ------------ ------------ ------------ ------------ ----------
Earnings 21,881 21,425 43,904 61,586 49,163 52,831 44,192
=========== ============ ============ ============ ============ ============ ==========
Fixed Charges:
Interest expense 14,045 11,236 23,252 25,204 27,268 21,893 16,616
Interest capitalized - - - 207 1,059 3,343 2,974
Amortization of deferred loan costs 725 588 1,893 908 888 836 1,069
Preferred stock dividends - - - - - - -
----------- ------------ ------------ ------------ ------------ ------------ ----------
Total Fixed Charges 14,770 11,824 25,145 26,319 29,215 26,072 20,659
=========== ============ ============ ============ ============ ============ ==========
Ratio of Earnings to Fixed Charges 1.48 1.81 1.75 2.34 1.68 2.03 2.14
=========== ============ ============ ============ ============ ============ ==========