-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KWu9fDG8uD39+OPtD/yl9plVseC11I5uGNEP7xksn4EE3JpFhlC0lAHHIOOF05wf A9ozUt3bHPUdvTSHk1Pifg== 0000950144-97-000865.txt : 19970225 0000950144-97-000865.hdr.sgml : 19970225 ACCESSION NUMBER: 0000950144-97-000865 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970204 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970204 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: VOLUNTEER CAPITAL CORP / TN / CENTRAL INDEX KEY: 0000103884 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 620854056 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08766 FILM NUMBER: 97517581 BUSINESS ADDRESS: STREET 1: 3401 WEST END AVE STREET 2: P O BOX 24300 CITY: NASHVILLE STATE: TN ZIP: 37202 BUSINESS PHONE: 6152691900 MAIL ADDRESS: STREET 1: 3401 WEST END AVE STREET 2: SUITE 260 CITY: NASHVILLE STATE: TN ZIP: 37202 FORMER COMPANY: FORMER CONFORMED NAME: WINNERS CORP DATE OF NAME CHANGE: 19890910 FORMER COMPANY: FORMER CONFORMED NAME: VOLUNTEER CAPITAL CORP DATE OF NAME CHANGE: 19820520 8-K/A 1 VOLUNTEER CAPITAL CORPORATION FORM 8-K/A 02/04/97 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A Amendment No. 1 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 4, 1997 (November 21, 1996) VOLUNTEER CAPITAL CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Tennessee 1-8766 62-0854056 - ------------------------------------------------ ------------------------ --------------------- (State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 3401 West End Avenue, Suite 260, P.O. Box 24300, Nashville, Tennessee 37202 - -------------------------------------------------------------------- --------------------- (Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (615) 269-1900 Not Applicable - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) 2 This amendment to the Registrant's Current Report on Form 8-K amends Item 7 to add the pro forma financial statement information required to be filed. Item 2. Acquisition or Disposition of Assets. On November 21, 1996, Volunteer Capital Corporation (the "Company") consummated the previously reported sale of substantially all of the assets of its Wendy's division to Wendy's International, Inc., pursuant to an Asset Purchase Agreement. The proceeds from the sale totaled approximately $28 million. Approximately $12.5 million of such amounts was used to repay the amounts outstanding under the Company's line of credit, and the balance (after payment of expenses) will be used to fund a significant portion of its commitments for capital expenditures for J. Alexander's restaurants currently under development. Item 7. Financial Statements and Exhibits. (a) Exhibits 99 Press Release (previously filed) (b) Pro Forma Financial Information 2 3 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. VOLUNTEER CAPITAL CORPORATION Date: February 4, 1997 By: /s/ R. Gregory Lewis --------------------------- R. Gregory Lewis Vice President/Chief Financial Officer 4 INDEX TO PRO FORMA CONSOLIDATED CONDENSED FINANCIAL STATEMENTS Introduction Pro forma consolidated condensed balance sheet at September 29, 1996 Pro forma consolidated statement of income for the nine months ended September 29, 1996 Pro forma consolidated statement of income for the year ended December 31, 1995 Notes to pro forma consolidated condensed financial statements 5 VOLUNTEER CAPITAL CORPORATION AND SUBSIDIARIES PRO FORMA CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED) The following unaudited pro forma consolidated condensed balance sheet as of September 29, 1996, and the pro forma consolidated statements of income for the year ended December 31, 1995 and the nine months ended September 29, 1996 give effect to the disposition by the Company of its Wendy's restaurant operations. The pro forma statements have been prepared by Volunteer Capital Corporation management based on the historical financial statements of Volunteer Capital Corporation and subsidiaries, giving effect to the assumptions and adjustments in the accompanying notes to the pro forma consolidated condensed financial statements, as if the disposition had occurred, for purposes of the unaudited pro forma consolidated statements of income, on January 2, 1995, and for purposes of the unaudited consolidated condensed balance sheet, on September 29, 1996. The unaudited pro forma statements presented are for informational purposes only and do not purport to represent what Volunteer Capital Corporation's financial position as of September 29, 1996 or results of operations for the fiscal year ended December 31, 1995, or the nine months ended September 29, 1996 would have been had the disposition actually occurred on the date or at the beginning of the period indicated, or to project Volunteer Capital Corporation's financial position or results of operations for any future date or period. The pro forma adjustments are based upon available information and upon certain assumptions that the Company's management believes are reasonable in the circumstances. The pro forma financial information should be read in conjunction with the December 31, 1995 audited consolidated financial statements and the September 29, 1996 consolidated condensed financial statements of Volunteer Capital Corporation. 6 VOLUNTEER CAPITAL CORPORATION AND SUBSIDIARIES PRO FORMA CONSOLIDATED CONDENSED BALANCE SHEET SEPTEMBER 29, 1996 (UNAUDITED IN THOUSANDS)
PRO FORMA PRO FORMA AS REPORTED ADJUSTMENTS(A) BALANCES(A) ----------- -------------- ----------- ASSETS CURRENT ASSETS Cash and cash equivalents....................... $ 1,847 $ 13,841 (B) $15,688 Deferred income taxes........................... 4,314 (3,168)(C) 1,146 Net assets held for disposal.................... 17,320 (582)(B) - (16,738)(C) Other current assets............................ 887 - 887 ------- -------- ------- TOTAL CURRENT ASSETS........................ 24,368 (6,647) 17,721 OTHER ASSETS......................................... 1,205 - 1,205 PROPERTY AND EQUIPMENT, at cost, less allowances for depreciation and amortization of $3,913.......................... 41,329 - 41,329 DEFERRED INCOME TAXES................................ 728 - 728 DEFERRED CHARGES, less amortization.................. 2,797 (384)(C) 2,413 ------- -------- ------- $70,427 $ (7,031) $63,396 ======= ======== ======= LIABILITIES AND STOCKHOLDERS' EQUITY ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES............................. $ 9,449 $ (3,596)(B) $ 5,853 LONG-TERM DEBT AND OBLIGATIONS UNDER CAPITAL LEASES, net of portion classified as current........................... 25,926 (9,982)(B) 15,944 DEFERRED COMPENSATION AND OTHER DEFERRED CREDITS.......................... 602 - 602 STOCKHOLDERS' EQUITY Common Stock.................................... 266 - 266 Preferred Stock................................. - - - Additional paid-in capital...................... 29,471 - 29,471 Retained earnings............................... 5,741 6,547(C) 12,288 ------- -------- ------ 35,478 6,547 42,025 Note receivable - Employee Stock Ownership Plan.............................. (1,028) - (1,028) ------- -------- ------- TOTAL STOCKHOLDERS' EQUITY.................. 34,450 6,547 40,997 ------- -------- ------- $70,427 $ (7,031) $63,396 ======= ======== =======
See notes to pro forma consolidated condensed financial statements. 7 VOLUNTEER CAPITAL CORPORATION AND SUBSIDIARIES PRO FORMA CONSOLIDATED STATEMENT OF INCOME NINE MONTHS ENDED SEPTEMBER 29, 1996 (UNAUDITED IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
PRO FORMA PRO FORMA AS REPORTED ADJUSTMENTS(A) RESULTS(A) ----------- -------------- ---------- Net sales ............................................. $ 70,640 $(41,051)(D) $ 29,589 Costs and expenses: Cost of sales .................................... 24,687 (14,383)(D) 10,304 Restaurant labor and related costs ............... 21,053 (11,883)(D) 9,170 Depreciation and amortization of restaurant property and equipment .................................... 2,360 (1,074)(D) 1,286 Royalties ........................................ 1,643 (1,643)(D) -- Other operating expenses ......................... 11,060 (6,007)(D) 5,053 -------- -------- -------- Total restaurant operating expenses .......... 60,803 (34,990) 25,813 -------- -------- -------- Income from restaurant operations ..................... 9,837 (6,061) 3,776 General and administrative expenses ................... 6,268 (2,274)(E) 3,994 Wendy's disposition costs ............................. 542 (542)(F) -- -------- -------- -------- Operating income (loss) ............................... 3,027 (3,245) (218) -------- -------- -------- Other income (expense): Interest expense ................................. (1,220) 530 (G) (690) Interest income .................................. 34 (21)(H) 13 Other, net ....................................... 7 63 (H) 70 -------- -------- -------- Total other income (expense) ................. (1,179) 572 (607) -------- -------- -------- Income (loss) before income taxes ..................... 1,848 (2,673) (825) Income tax provision (benefit) ........................ 647 (1,016)(I) (369) -------- -------- -------- Net income (loss) ..................................... $ 1,201 $ (1,657) $ (456) ======== ======== ======== Earnings (loss) per share: Primary .......................................... $ .22 $ (.09) ======== ======== Fully diluted .................................... $ .22 $ (.09) ======== ======== Weighted average number of shares: Primary .......................................... 5,469 5,297 ======== ======== Fully diluted .................................... 5,469 5,297 ======== ========
See notes to pro forma consolidated condensed financial statements. 8 VOLUNTEER CAPITAL CORPORATION AND SUBSIDIARIES PRO FORMA CONSOLIDATED STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1995 (UNAUDITED IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
PRO FORMA PRO FORMA AS REPORTED(L) ADJUSTMENTS(A) RESULTS(A) -------------- -------------- ---------- Net sales ............................................. $ 79,288 $(53,694)(D) $ 25,594 Costs and expenses: Cost of sales .................................... 27,707 (18,612)(D) 9,095 Restaurant labor and related costs ............... 23,155 (15,407)(D) 7,748 Depreciation and amortization of restaurant property and equipment .................................... 2,940 (1,907)(D) 1,033 Royalties ........................................ 2,149 (2,149)(D) -- Other operating expenses ......................... 11,626 (7,527)(D) 4,099 -------- -------- -------- Total restaurant operating expenses .......... 67,577 (45,602) 21,975 -------- -------- Income from restaurant operations ..................... 11,711 (8,092) 3,619 General and administrative expenses ................... 7,436 (3,150)(E) 4,286 -------- -------- -------- Operating income (loss) ............................... 4,275 (4,942) (667) -------- -------- -------- Other income (expense): Interest expense ................................. (1,416) 375 (G) (1,041) Interest income .................................. 579 (24)(H) 555 Other, net ....................................... 20 98 (H) 118 -------- -------- -------- Total other income (expense) ................. (817) 449 (368) -------- -------- -------- Income (loss) before income taxes ..................... 3,458 (4,493) (1,035) Income tax benefit .................................... 1,558 1,707 (I) 3,265 -------- -------- -------- Net income ............................................ $ 5,016 $ (2,786) $ 2,230 ======== ======== ======== Earnings per share: Primary .......................................... $ .92 $ .41 ======== ======== Fully diluted .................................... $ .92 $ .41 ======== ======== Weighted average number of shares: Primary .......................................... 5,478 5,478 ======== ======== Fully diluted .................................... 5,479 5,479 ======== ========
See notes to pro forma consolidated condensed financial statements. 9 VOLUNTEER CAPITAL CORPORATION AND SUBSIDIARIES NOTES TO PRO FORMA CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED IN THOUSANDS) (A) On November 21, 1996, the Company completed the sale of 52 of its 58 Wendy's restaurants to Wendy's International, Inc. for $28.3 million in cash plus the assumption of certain capitalized lease obligations and long-term debt. The Company has entered into a contract with Wendy's International, Inc. for the sale of one additional restaurant for a cash selling price of $300,000 and the remaining five restaurants have been or will be disposed of by the Company in unrelated transactions. Pro forma information has been presented on a combined basis for the transactions described above. (B) Net proceeds assumed upon completion of the disposition are as follows: Cash sales price.................................................................... $ 29,140 Reimbursement for or realization of inventories and prepaid expenses and other current assets classified as Net assets held for disposal................................................................ 582 Less payment of liabilities: Accounts payable and other current liabilities................................... (3,596) Balance on line of credit and other long-term debt............................... (9,982) Expenses related to sale............................................................ (1,458) Income taxes payable................................................................ (845) -------- Net cash proceeds................................................................... $ 13,841 ======== (C) Net gain assumed from the disposition is as follows: Cash sales price.................................................................... $ 29,140 Items included in Net assets held for disposal: Net book value of property and equipment............................... $(19,202) Long-term debt and capital lease obligations assumed by purchaser............................................... 2,464 (16,738) -------- Deduct: Deferred charges................................................................. (384) Expenses related to sale......................................................... (1,458) Income Taxes: Payable.......................................... (845) Deferred......................................... (3,168) (4,013) ------- -------- Net gain............................................................................ $ 6,547 ========
10 (D) Elimination of the net sales and restaurant costs and expenses of the Wendy's operations. (E) Elimination of general and administrative expenses directly identifiable with the Wendy's operations. (F) Elimination of expenses previously accrued in connection with the Wendy's disposition as if the sale had occurred at the beginning of the period. (G) Interest expense has been adjusted to reflect reductions due to the assumed retirement and assumption of debt in connection with the disposition of assets. (H) Elimination of interest income and miscellaneous expense items directly attributable to the Wendy's operations. (I) Provision for income taxes at statutory rate. (J) Interest income on the proceeds of the disposition has not been included in the pro forma consolidated statements of income. Interest income on the proceeds would have been approximately $1,191 and $733 for the year ended December 31,1995 and the nine months ended September 29, 1996, respectively, had the disposition occurred at the beginning of the period and the proceeds been invested at an assumed annual interest rate of 5%. (K) The pro forma consolidated statements of income have not been adjusted for the estimated net gain from the disposition of the Wendy's operations. (L) Certain reclassifications have been made in the consolidated statement of income for the year ended December 31, 1995 to conform to the 1996 presentation. -----END PRIVACY-ENHANCED MESSAGE-----