-----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, RR1orTG5U2peVgLhbaMket/lZQCaEqCe9P1AQ2e4+pZAOzxgJoPyfwX1e7uV9F9H BIdtBRTasA9qe3WLINzG6w== 0000897101-99-001189.txt : 19991224 0000897101-99-001189.hdr.sgml : 19991224 ACCESSION NUMBER: 0000897101-99-001189 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991210 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991223 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GROW BIZ INTERNATIONAL INC CENTRAL INDEX KEY: 0000908315 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS RETAIL [5900] IRS NUMBER: 411622691 STATE OF INCORPORATION: MN FISCAL YEAR END: 1226 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-22012 FILM NUMBER: 99779989 BUSINESS ADDRESS: STREET 1: 4200 DAHLBERG DR CITY: GOLDEN VALLEY STATE: MN ZIP: 55422-4837 BUSINESS PHONE: 6125208500 8-K 1 UNITED STATES 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) December 10, 1999 GROW BIZ INTERNATIONAL, INC. ---------------------------------------------- (Exact Name of Issuer as Specified in Charter) Minnesota 0-22012 41-1622691 --------- ------- ---------- (State or Other Jurisdiction of (Commission File (I.R.S. Employer Incorporation or Organization) Number) Identification Number) 4200 Dahlberg Drive, Golden Valley, MN 55422-4837 ------------------------------------------------- (Address of Principal Executive Offices) (612) 520-8500 -------------- (Registrant's Telephone Number, Including Area Code) ITEM 2. Acquisition or Disposition of Assets On December 10, 1999 Grow Biz International, Inc. completed the sale of the assets of the Company's It's About Games(TM) concept as previously disclosed in Form 8K Item 5 dated October 14, 1999. Subsequent to that filing, the Company undertook an orderly liquidation of the inventory and other assets by conducting a liquidation sale. Approximately fifty percent of the assets were disposed of in three main transactions. The first sale to Times Two, LLC, an unrelated party, of substantially all of the assets of fourteen stores in Kentucky, Maryland, Ohio and Pennsylvania for $114,200 plus inventory valued at 40% of cost to be received in cash and a promissory note. The second sale to Crescent Marketing, Inc, an unrelated party, of substantially all of the assets of fourteen stores in Ohio for $42,000 plus inventory at 40% of cost to be received in cash and a promissory note. The third a bulk inventory sale to L.A. Closeout, Inc., an unrelated party, for $140,000 cash. The remaining assets of the It's About Games(TM) concept were disposed of by abandonment or liquidation sale. ITEM 7. Financial Statements and Exhibits The following pro forma financial statements reflect the operating results that would have been reported for the fiscal year ended December 26, 1998 and nine months ended September 25, 1999 if the disposition of the It's About Games(TM) concept assets had been consummated prior to those periods. Certain corporate general and administrative expenses have not been adjusted since definite plans for those costs have not been made. No pro forma balance sheet is presented since the assets disposed were reflected in the September 25, 1999 balance sheet previously issued on Form 10-Q as a one-line asset held for sale. GROW BIZ INTERNATIONAL, INC. AND SUBSIDIARY UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 26, 1998
---------------------------------------------- As Reported Adjustments (a) Pro Forma ---------------------------------------------- REVENUE Merchandise sales $ 73,306,000 $ 17,304,800 $ 56,001,200 Royalties 19,472,800 10,000 19,462,800 Franchise fees 2,986,400 60,000 2,926,400 Advertising and other 585,700 1,900 583,800 ------------ ------------ ------------ Total revenue 96,350,900 17,376,700 78,974,200 COST OF MERCHANDISE SOLD 60,324,600 11,528,200 48,796,400 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 29,105,000 6,109,500 22,995,500 GAIN ON SALE OF DISC GO ROUND 5,231,500 -- 5,231,500 ------------ ------------ ------------ Income from operations 12,152,800 (261,000) 12,413,800 INTEREST EXPENSE (710,500) -- (710,500) INTEREST INCOME 471,700 -- 471,700 ------------ ------------ ------------ Income before income taxes 11,914,000 (261,000) 12,175,000 PROVISION FOR INCOME TAXES 4,670,200 (102,300) 4,772,500 ------------ ------------ ------------ NET INCOME $ 7,243,800 $ (158,700) $ 7,402,500 ============ ============ ============ BASIC EARNINGS PER SHARE $ 1.28 $ 1.31 ============ ============ BASIC WEIGHTED AVERAGE SHARES OUTSTANDING 5,664,000 5,664,000 ============ ============ DILUTED EARNINGS PER SHARE $ 1.24 $ 1.27 ============ ============ DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 5,832,700 5,832,700 ============ ============ RETAINED EARNINGS, DECEMBER 26, 1998 $ 10,164,900 $ (158,700) $ 10,323,600 ============ ============ ============
(a) Reflects the elimination of It's About Games(TM) operations for the respective period. GROW BIZ INTERNATIONAL, INC. AND SUBSIDIARY UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 25, 1999
------------------------------------------------------------------ As Reported Adjustments (a) Adjustments (b) Pro Forma ------------------------------------------------------------------ REVENUE: Merchandise sales $ 34,165,600 $ 11,204,800 -- $ 22,960,800 Royalties 14,391,100 26,300 -- 14,364,800 Franchise fees 1,478,800 2,500 -- 1,476,300 Advertising and other 438,200 800 -- 437,400 ------------ ------------ ------------ ------------ Total revenue 50,473,700 11,234,400 -- 39,239,300 COST OF MERCHANDISE SOLD 29,195,400 8,533,900 -- 20,661,500 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 21,541,100 6,171,100 -- 15,370,000 RESTRUCTURING CHARGE 11,575,300 -- 11,575,300 -- ------------ ------------ ------------ ------------ Income from operations (11,838,100) (3,470,600) (11,575,300) 3,207,800 INTEREST INCOME 284,000 -- -- 284,000 INTEREST EXPENSE (1,171,900) -- -- (1,171,900) ------------ ------------ ------------ ------------ Income before income taxes (12,726,000) (3,470,600) (11,575,300) 2,319,900 (BENEFIT) PROVISION FOR INCOME TAXES (4,988,600) (1,360,500) (4,537,500) 909,400 ------------ ------------ ------------ ------------ NET INCOME (LOSS) $ (7,737,400) $ (2,110,100) $ (7,037,800) $ 1,410,500 ============ ============ ============ ============ NET INCOME (LOSS) PER COMMON SHARE - - BASIC $ (1.50) $ .27 ============ ============ WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 5,159,200 5,159,200 ============ ============ NET INCOME (LOSS) PER COMMON SHARE - - DILUTED $ (1.50) $ .27 ============ ============ WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 5,159,200 5,183,600 ============ ============ RETAINED EARNINGS, SEPTEMBER 25, 1999 $ 3,851,300 $ (2,268,800)(c) $ (7,037,800) $ 13,157,900 ============ ============ ============ ============
(a) Reflects the elimination of It's About Games(TM) operations for the respective period. (b) Reflects the elimination of the restructuring charge relating to It's About Games(TM) previously reported. (c) Cumulative effect for the twelve and nine month periods ended December 26, 1998 and September 25, 1999, respectively. 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. GROW BIZ INTERNATIONAL, INC. Date: December 22, 1999 By: /s/ K. Jeffrey Dahlberg ----------------------- K. Jeffrey Dahlberg Chairman and Chief Executive Officer Date: December 22, 1999 By: /s/ David J. Osdoba, Jr. ------------------------ David J. Osdoba, Jr. Vice President of Finance and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----