-----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, HovcZmBgaSomGThTk1T8vDI09PmKieb2ophaxr8frD3xt7QFgCpIt84t3WMJtIvN Aarj89ZVQgwHDS6wtvjs4Q== 0000916641-97-000126.txt : 19970225 0000916641-97-000126.hdr.sgml : 19970225 ACCESSION NUMBER: 0000916641-97-000126 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19961231 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970224 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEILIG MEYERS CO CENTRAL INDEX KEY: 0000046601 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FURNITURE STORES [5712] IRS NUMBER: 540558861 STATE OF INCORPORATION: VA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08484 FILM NUMBER: 97541727 BUSINESS ADDRESS: STREET 1: 2235 STAPLES MILL RD CITY: RICHMOND STATE: VA ZIP: 23230 BUSINESS PHONE: 8043599171 MAIL ADDRESS: STREET 1: 2235 STAPLES MILL RD CITY: RICHMOND STATE: VA ZIP: 23230 8-K/A 1 HEILIG-MEYERS COMPANY 8-K/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K/A AMENDMENT NUMBER 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) December 31, 1996 Heilig-Meyers Company (Exact name of registrant as specified in its charter) Virginia (State or other jurisdiction of incorporation) 1-8484 54-0558861 (Commission file number) (IRS Employer Identification No.) 2235 Staples Mill Road, Richmond, Virginia 23230 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (804) 359-9171 - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 7. Financial Statements and Exhibits (a) Financial Statements The following audited consolidated financial statements of Rhodes and the related Report of Independent Public Accountants are set forth on pages F-2 through F-18 of the Prospectus/Proxy Statement included in Heilig-Meyers' registration statement on Form S-4 (No. 333-16425), which became effective on November 22, 1996 ("Prospectus/Proxy Statement"). Such information is incorporated herein by reference. Consolidated Balance Sheets as of February 28 (29), 1995 and 1996. Consolidated Statements of Operations for each of the years ended February 28 (29), 1994, 1995 and 1996. Consolidated Statements of Shareholders' Equity for each of the years ended February 28 (29), 1994, 1995 and 1996. Consolidated Statements of Cash Flows for each of the years ended February 28 (29), 1994, 1995 and 1996. Notes to Consolidated Financial Statements (February 28 (29), 1996, 1995 and 1994). The following audited financial statements of Weberg Division (a division of Weberg Enterprises, Inc.), which was acquired by Rhodes on November 1, 1995, and the related Independent Auditors' Report are set forth on pages F-19 through F-26 of the Prospectus/Proxy Statement. Such information is incorporated herein by reference. Balance Sheet as of December 31, 1994. Statement of Income for the year ended December 31, 1994. Statement of Cash Flows for the year ended December 31, 1994. Notes to Financial Statements (Year ended December 31, 1994). The unaudited condensed consolidated interim financial statements of Rhodes as of November 30, 1996 and for the nine months ended November 30, 1996 and 1995 are set forth below. RHODES, INC. ================================================================================ CONDENSED CONSOLIDATED BALANCE SHEET (In Thousands) (Unaudited) November 30 ASSETS 1996 --------------------------------------------------------- ----------- Current Assets: Cash $ 508 Accounts Receivable 8,380 Inventories at LIFO Cost 82,029 Prepaid Expenses and Other 11,983 ---------- Total Current Assets 102,900 Property and Equipment, Net 78,126 Capitalized Real Estate Leases, Net 5,736 Intangible Assets, Net 66,429 Other Assets 5,165 ---------- Total Assets $ 258,356 ========== LIABILITIES AND SHAREHOLDERS' EQUITY --------------------------------------------------------- Current Liabilities: Notes and Loans Payable - Current Portion $ 15,219 Accounts Payable, Accruals and Other 94,750 ---------- Total Current Liabilities 109,969 Deferred Income Taxes 6,862 Long-Term Debt/Capital Leases 76,992 Total Shareholders' Equity 64,533 ---------- Total Liabilities and Shareholders' Equity $ 258,356 ========== See note to condensed consolidated interim financial statements. RHODES, INC. ================================================================================ CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands Except Per Share Data) (Unaudited)
Nine Months Ended ------------------------------------------ November 30 November 30 1996 1995 ----------------- ---------------------- Net Sales $ 375,258 $ 296,543 Cost of Goods Sold 206,191 153,727 ----------------- ------------------ Gross Profit 169,067 142,816 Finance Charges and Insurance Commissions 4,998 4,281 ----------------- ------------------ Operating Expenses: Selling 66,142 49,767 General and Administrative 107,657 78,457 Amortization of Intangibles 2,362 2,179 Provision for Credit Losses 330 71 Other (Income), Net 156 (139) Non-Recurring One-Time Charge --- 2,400 ----------------- ------------------ 176,647 132,735 ----------------- ------------------ Income (Loss) Before Interest Expense and Income Taxes (2,582) 14,362 Interest Expense, Net 7,170 4,817 ----------------- ------------------ Income (Loss) Before Income Taxes (9,752) 9,545 Provision for Income Taxes (3,998) 3,914 ----------------- ------------------ Net Income (Loss) (5,754) 5,631 ================= ================== Net Income (Loss) Per Weighted Average Share Outstanding $ (0.63) $ 0.60 ================= ================== Weighted Average Shares Outstanding 9,157 9,328 ================= ==================
See note to condensed consolidated interim financial statements. RHODES, INC. =============================================================================== CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited)
Nine Months Ended ---------------------------------------- November 30 November 30 1996 1995 ----------------- ----------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (5,754) $ 5,631 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 10,380 7,924 Changes in current assets and liabilities: Receivables, net (3,168) (4,455) Inventories 5,936 (8,959) Prepaid expenses and other 4,614 (616) Deferred tax assets (4,368) (44) Accounts payable and accrued liabilities 6,410 9,575 Deferred income on warranties, undelivered sales and credit commissions 1,668 2,173 ------------- ------------- Net cash provided by operating activities $ 15,718 $ 11,229 ------------- ------------- CASH FLOWS PROVIDED BY (USED BY) INVESTING ACTIVITIES: Purchase of Weberg - (30,125) Additions to property and equipment (9,908) (17,148) Additions to intangible assets (859) (138) Decrease in other assets, net 655 447 Decrease in obligations under capital leases (334) (799) ------------- ------------- Net cash used by investing activities $ (10,446) $ (47,763) ------------- ------------- CASH FLOWS PROVIDED BY (USED BY) FINANCING ACTIVITIES: Proceeds from (repayment of) long-term debt (5,343) 35,673 Purchase of stock-employee stock purchase plan 267 350 Repurchase of stock - (2,490) ------------- ------------- Net cash provided by (used by) financing activities $ (5,076) $ 33,533 ------------- ------------- INCREASE (DECREASE) IN CASH 196 (3,001) CASH AT BEGINNING OF PERIOD 312 3,268 ============= ============= CASH AT END OF PERIOD $ 508 $ 267 ============= ============= SUPPLEMENTAL DISCLOSURE: CASH PAYMENTS FOR: Interest $ 7,170 $ 4,817 ============= ============= Income taxes $ 87 $ 3,776 ============= =============
See note to condensed consolidated interim financial statements. RHODES, INC. =============================================================================== NOTE TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) 1. BASIS OF PRESENTATION The interim financial information presented herein as of November 30, 1996 and for the nine months ended November 30, 1996 and 1995 is unaudited. The financial information reflects all normal recurring adjustments. Accounting policies followed by Rhodes, Inc. are described in Note 1 to the audited consolidated financial statements of Rhodes as of February 29, 1996, referred to above. (b) Pro Forma Financial Information The following unaudited pro forma combined statements of earnings for the year ended February 29, 1996 and the nine months ended November 30, 1996 give effect to (i) acquisitions of certain assets from various entities by Heilig-Meyers and by Rhodes that have occurred and (ii) the acquisition of Rhodes (the "Merger"). The pro forma information is based on the historical financial statements of Heilig-Meyers and Rhodes giving effect to the Merger under the purchase method of accounting and the assumptions and adjustments described in the accompanying notes to the unaudited pro forma financial statements. The following unaudited pro forma combined balance sheet gives effect to the acquisition of Rhodes as if it had been completed as of November 30, 1996. The unaudited pro forma statements have been prepared by the management of Heilig-Meyers and Rhodes based upon the historical information included herein and other financial information. These pro forma statements do not purport to be indicative of the results of operations or financial position which would have occurred had the acquisition been made at the beginning of the periods or as of the date indicated or of the financial position or results of operations which may be obtained in the future. Heilig-Meyers will account for the transaction under the purchase method of accounting. Accordingly, the cost to acquire Rhodes will be allocated to the assets acquired and liabilities assumed according to their respective fair values. The final allocation of the purchase price is dependent upon certain valuations and other studies that have not progressed to a stage where there is sufficient information to make such a complete allocation in the accompanying pro forma statements. Accordingly, the purchase allocation adjustments are preliminary and have been made solely for the purpose of preparing such pro forma statements. HEILIG-MEYERS COMPANY PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS FOR THE YEAR ENDED FEBRUARY 29, 1996
HEILIG-MEYERS RHODES ---------------------------------------- ----------------------------------------- OTHER OTHER PRO FORMA HISTORICAL ACQUISITIONS (A) PRO FORMA HISTORICAL ACQUISITIONS (B) PRO FORMA ADJUSTMENTS (C) ---------- ---------------- ---------- ---------- ---------------- --------- --------------- (IN THOUSANDS) REVENUES: Sales............... $1,138,506 $ 92,750 $1,231,256 $ 430,193 $ 76,015 $ 506,208 Other Income........ 220,843 7,900 228,743 5,822 5,822 ---------- ---------------- ---------- ---------- ---------------- --------- Total Revenues.... 1,359,349 100,650 1,459,999 436,015 76,015 512,030 ---------- ---------------- ---------- ---------- ---------------- --------- COSTS AND EXPENSES: Costs of sales...... 752,317 62,400 814,717 225,953 46,161 272,114 55,450 (D) (550)(E) Selling, general and administrative.... 436,361 32,400 468,761 190,445 29,678 220,123 (55,450)(D) (2,325)(F) 2,300 (G) Interest............ 40,767 4,950 45,717 6,898 1,884 8,782 (1,825)(H) Non-recurring charge............ 2,400 2,400 Provision for doubtful accounts.......... 65,379 1,600 66,979 167 61 228 ---------- ---------------- ---------- ---------- ---------------- --------- --------------- Total costs and expenses........ 1,294,824 101,350 1,396,174 425,863 77,784 503,647 (2,400) ---------- ---------------- ---------- ---------- ---------------- --------- --------------- EARNINGS (LOSS) BEFORE INCOME TAXES........ 64,525 (700) 63,825 10,152 (1,769) 8,383 2,400 Provision for income taxes............... 23,021 (250) 22,771 4,162 (726) 3,436 960 (I) ---------- ---------------- ---------- ---------- ---------------- --------- --------------- NET EARNINGS (LOSS)... $ 41,504 $ (450) $ 41,054 $ 5,990 $ (1,043) $ 4,947 $ 1,440 ---------- ---------------- ---------- ---------- ---------------- --------- --------------- ---------- ---------------- ---------- ---------- ---------------- --------- --------------- Net earnings per share: Primary and fully diluted $.84 ---------- ---------- Weighted average shares: Fully diluted 49,645 PRO FORMA COMBINED ---------- REVENUES: Sales............... $1,737,464 Other Income........ 234,565 ---------- Total Revenues.... 1,972,029 ---------- COSTS AND EXPENSES: Costs of sales...... 1,141,731 Selling, general and administrative.... 633,409 Interest............ 52,674 Non-recurring charge............ 2,400 Provision for doubtful accounts.......... 67,207 ---------- Total costs and expenses........ 1,897,421 ---------- EARNINGS (LOSS) BEFORE INCOME TAXES........ 74,608 Provision for income taxes............... 27,167 ---------- NET EARNINGS (LOSS)... $ 47,441 ---------- ---------- .87 ---------- ---------- 54,220(J)
See notes to pro forma condensed consolidated statements of earnings. HEILIG-MEYERS COMPANY PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS FOR THE NINE MONTHS ENDED NOVEMBER 30, 1996
HEILIG-MEYERS ------------------------------------------ OTHER RHODES PRO FORMA PRO FORMA HISTORICAL ACQUISITIONS (A) PRO FORMA HISTORICAL ADJUSTMENTS (C) COMBINED ---------- ---------------- ---------- ---------- --------------- ---------- (IN THOUSANDS) REVENUES: Sales............................... $ 939,406 $ 44,900 $ 984,306 $ 375,258 $1,359,564 Other Income........................ 175,506 3,650 179,156 4,998 184,154 ---------- ---------------- ---------- ---------- ---------- Total Revenues................... 1,114,912 48,550 1,163,462 380,256 1,543,718 ---------- ---------------- ---------- ---------- ---------- COSTS AND EXPENSES: Costs of sales...................... 613,032 30,550 643,582 206,191 55,750 (D) 905,023 (500)(E) Selling, general and administrative................... 362,445 15,500 377,945 176,317 (55,750)(D) 498,337 (1,900)(F) 1,725 (G) Interest............................ 33,415 2,500 35,915 7,170 (1,660)(H) 41,425 Provision for doubtful accounts..... 60,027 700 60,727 330 61,057 ---------- ---------------- ---------- ---------- --------------- ---------- Total costs and expenses......... 1,068,919 49,250 1,118,169 390,008 (2,335) 1,505,842 ---------- ---------------- ---------- ---------- --------------- ---------- EARNINGS (LOSS) BEFORE INCOME TAXES... 45,993 (700) 45,293 (9,752) 2,335 37,876 Provision for income taxes............ 16,384 (250) 16,134 (3,998) 934 (I) 13,070 ---------- ---------------- ---------- ---------- --------------- ---------- NET EARNINGS (LOSS)................... $ 29,609 $ (450) $ 29,159 $ (5,754) $ 1,401 $ 24,806 ---------- ---------------- ---------- ---------- --------------- ---------- ---------- ---------------- ---------- ---------- --------------- ---------- Net earnings per share: Primary and fully diluted........... $ .60 $ .46 ---------- ---------- ---------- ---------- Weighted average shares: Fully diluted...................... 49,427 54,002(J)
See notes to pro forma condensed consolidated statements of earnings. NOTES TO PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (A) Amounts reflect the pro forma results of other Heilig-Meyers acquisitions that have occurred. These amounts include pro forma adjustments to reflect the amortization of goodwill and additional interest expense that would have been incurred had the acquisitions been completed at the beginning of the period. (B) Amounts reflect the acquisition of certain assets of Weberg by Rhodes during fiscal year 1996. These amounts include pro forma adjustments to reclassify certain revenue and expense amounts to conform to Rhodes' presentation. Additionally, amounts reflect the amortization of goodwill and additional interest expense that would have occurred had the acquisition been completed at the beginning of the period. (C) Heilig-Meyers expects to achieve certain synergies in relation to the business combination. Such synergies are not included in the pro forma adjustments. (D) Rhodes occupancy, warehouse and delivery expenses have been reclassified from selling, general and administrative expenses to cost of sales to be consistent with the Heilig-Meyers presentation. (E) Elimination of the effect of LIFO inventory on cost of goods sold. (F) Elimination of amortization of Rhodes' historical goodwill and other intangible assets. (G) Amortization of estimated goodwill attributable to the transaction. (H) To give effect to refinancing of certain Rhodes long term notes payable. (I) To tax effect pro forma adjustments at the statutory rate adjusted for the tax treatment of goodwill. (J) To give effect to the issuance of Heilig-Meyers common stock in connection with the Merger at an exchange rate of 0.50, which is the fraction of a share of Heilig-Meyers common stock which is issuable in exchange for one share of Rhodes stock in the Merger. HEILIG-MEYERS COMPANY PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET AS OF NOVEMBER 30, 1996
HEILIG-MEYERS RHODES PRO FORMA PRO FORMA HISTORICAL HISTORICAL ADJUSTMENTS (A) COMBINED ------------- ---------- --------------- ---------- (AMOUNTS IN THOUSANDS) ASSETS: Current assets: Cash............................................................ $ 9,858 $ 508 $ 10,366 Accounts receivable, net........................................ 617,431 8,380 625,811 Inventories..................................................... 345,953 82,029 (12,168)(B) 415,814 Other........................................................... 69,316 11,983 14,383 (C) 95,682 ------------- ---------- --------------- ---------- Total Current Assets......................................... 1,042,558 102,900 2,215 1,147,673 ------------- ---------- --------------- ---------- Property, plant & equipment, net.................................. 261,843 83,862 345,705 Excess cost over net assets acquired and other, net.................................................. 212,857 71,594 (61,373)(D) 306,550 92,111 (D) (8,639)(E) ------------- ---------- --------------- ---------- $ 1,517,258 $ 258,356 $ 24,314 $1,799,928 ------------- ---------- --------------- ---------- ------------- ---------- --------------- ---------- LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Notes payable................................................... $ 153,750 $ 15,219 $ 168,969 Long-term debt due within one year.............................. 99,246 99,246 Accounts payable................................................ 121,598 51,753 121,598 Accrued expenses and other...................................... 103,373 42,997 18,000 (F) 217,773 1,650 (G) ------------- ---------- --------------- ---------- Total Current Liabilities.................................... 477,967 109,969 19,650 607,586 ------------- ---------- --------------- ---------- Long-term debt/capital leases..................................... 448,531 76,992 525,523 Deferred income taxes............................................. 51,605 6,862 58,467 Stockholders' equity: Common stock, at par............................................ 97,246 9,150 (H) 106,396 Capital in excess of par value.................................. 121,505 99,976 60,047 (H) 181,552 (99,976)(H) Retained earnings (accumulated deficit)......................... 320,404 (35,443) 35,443 (H) 320,404 ------------- ---------- --------------- ---------- Total stockholders' equity................................... 539,155 64,533 4,664 608,352 ------------- ---------- --------------- ---------- $ 1,517,258 $ 258,356 $ 24,314 $1,799,928 ------------- ---------- --------------- ---------- ------------- ---------- --------------- ----------
See notes to pro forma condensed consolidated balance sheet. HEILIG-MEYERS COMPANY NOTES TO PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) (A) The final allocation of the purchase price is dependent upon certain valuations and other studies that have not progressed to a stage where there is sufficient information to make such a complete allocation in the condensed consolidated pro forma balance sheet. Accordingly, the purchase price allocation adjustments are preliminary and have been made solely for the purpose of preparing such pro forma balance sheet. (B) To adjust Rhodes' LIFO inventory to a FIFO average cost basis net of allowances for obsolescence, shrinkage and damaged goods. (C) To record the estimated deferred income tax effects of adjustments described in (B) and (D) through (G) herein. (D) To remove Rhodes' net goodwill balance of $61,373 and to reflect the net effect of pro forma adjustments that impact the excess purchase price and other direct expenses of the Merger over the fair value of net assets acquired which is an estimated $92,111. (E) To adjust certain Rhodes' intangibles and other assets to estimated fair value. (F) To record liability for direct out-of-pocket costs and contractual obligations arising due to the change in control of Rhodes and estimated incremental costs associated with severance and relocation. (G) To accrue prepayment penalities related to long term debt obligations of Rhodes. (H) To record consideration for the Merger and remove Rhodes stockholders' equity balances: Heilig-Meyers shares to be issued in exchange for Rhodes common stock................................................... 4,575 Market value per share of Heilig-Meyers Common Stock on announcement date......................................... $15.125 ------- Total value of stock exchange.............................. $69,197 ------- ------- (c) Exhibits See the Index to Exhibits below. SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized. HEILIG-MEYERS COMPANY February 19, 1997 By: /s/ Joseph R. Jenkins --------------------- Joseph R. Jenkins Executive Vice President and Chief Financial Officer Index to Exhibits Exhibit Number and Description 2.2 Amendment No. 1 dated as of December 31, 1996 to the Agreement and Plan of Merger, dated as of September 17, 1996 among Rhodes, Inc., Heilig-Meyers Company and HM Merger Subsidiary, Inc. 23.1 Consent of Arthur Andersen LLP. 23.2 Consent of Deloitte & Touche LLP. EX-2 2 EXHIBIT 2.2 Exhibit 2.2 AMENDMENT NO. 1 TO AGREEMENT AND PLAN OF MERGER This Amendment No. 1, dated as of December 30, 1996 to the Agreement and Plan of Merger, dated as of September 17, 1996 (the "Original Agreement") by and among Heilig-Meyers Company (the "Purchaser"), HM Merger Subsidiary, Inc. and Rhodes, Inc. (the "Company"). The parties to the Original Agreement wish to amend the Original Agreement to delete the requirement that the Purchaser assume outstanding options to purchase shares of Company under the Rhodes, Inc. stock option program. NOW, THEREFORE, the parties agree as follows: 1. All terms defined in the Original Agreement shall have the same meanings unless the context requires otherwise. 2. Section 6.10 shall be deleted in its entirety and the following inserted in lieu thereof: Section 6.10 Stock Options. (a) Before or at the Effective Time, the Company shall cancel each outstanding option to purchase shares of Company Common Stock (a "Company Stock Option") issued pursuant to any incentive or stock option program of the Company (the "Company Stock Plan") whether such Company Stock Options are vested or unvested, and the Purchaser shall have no obligation to assume any Company Stock Options. (b) Before or at the Effective Time, Purchaser shall recommend for consideration to its Compensation Committee (or Sub-Committee) a grant of options to purchase shares of Purchaser's Common Stock under Purchaser's 1994 Stock Option Plan ("Purchaser's Option Plan") to each Company executive employee who as of the Effective Time (before any cancellation by virtue of Section 6.10(a) above) holds an outstanding Company Stock Option. The terms and conditions of the grant of such stock option awards made by Purchaser shall be determined by Purchaser's Compensation Committee (or Sub-committee); provided, however, that the number of shares covered by each option to be granted under Purchaser's Option Plan shall be determined in accordance with the formula approved by the Chairman and Chief Executive Officer of the Company (or his designee) and the Chairman and Chief Executive Officer of the Purchaser (or his designee). At the closing, the Purchaser shall deliver a certificate executed by an officer of the Purchaser certifying that the Purchaser's Compensation Committee (or Sub-committee) has granted stock option awards as contemplated by this Section 6.10(b). 3. This Amendment shall be governed by and construed in accordance with its laws of the State of Virginia without giving effect to the provisions thereof relating to conflict of laws. 4. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. 5. The Original Agreement and this Amendment shall be read together to constitute one agreement. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed on the day and year first above written. HEILIG-MEYERS COMPANY By: /s/ Roy B. Goodman ------------------------------ Name: Roy B. Goodman Title: Sr. Vice-President HM MERGER SUBSIDIARY, INC. By: /s/ Roy B. Goodman ----------------------------- Name: Roy B. Goodman Title: Secretary and Treasurer RHODES, INC. By: /s/ J.H. Dugan ----------------------------- Name: J.H. Dugan Title: Sr. V.P. EX-23 3 EXHIBIT 23.1 [Arthur Andersen LLP Letterhead] CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference in this amended Form 8-K of our reports dated April 25, 1996 included in Registration Statement File No. 333-16425 and into the Company's previously filed Registration Statement File Nos.: 2-96961, 33-28095, 33-35263, 33-43791, 33-50086, 33-54261, 33-64616, and 333-07753 and to all references to our firm. /s/ Arthur Andersen LLP Atlanta, Georgia February 17, 1997 EX-23 4 EXHIBIT 23.2 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in this Amendment No. 1 to Form 8-K of Heilig-Meyers Company to be filed on or about February 19, 1997 of our report dated January 5, 1996 (Report) on the financial statements of Weberg Division (a division of Weberg Enterprises, Inc.) as of and for the year ended December 31, 1994, which is contained in Registration Statement No. 333-16425 of Heilig-Meyers Company on Form S-4. We also consent to the incorporation by reference of such Report in Registration Statements Numbered 2-96961, 33-28095, 33-35263, 33-50086, 33-64616, 33-43791 and 35-54261 on Form S-8 of Heilig-Meyers Company and to the incorporation by reference of such Report in Registration Statement No. 333-07753 on Form S-3 of Heilig-Meyers Company. /s/ Deloitte & Touche LLP Denver, Colorado February 18, 1997 -----END PRIVACY-ENHANCED MESSAGE-----