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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) May 1, 2000
AMF BOWLING WORLDWIDE, INC.
(Exact name of registrant as specified in its charter)
Delaware 001-12131 13-3873272
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
8100 AMF Drive, Richmond, Virginia 23111
(Address of principal executive offices) (Zip Code)
N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events
On May 1, 2000, the registrant announced certain financial results for the
quarter ended March 31, 2000. A copy of the announcement is attached as Exhibit
99.1.
Item 7. Financial Statements and Exhibits
Exhibit Description
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99.1 Announcement regarding financial results for the quarter ended
March 31, 2000.
SIGNATURE
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.
Date: May 1, 2000 AMF BOWLING WORLDWIDE, INC.
By: /s/ Stephen E. Hare
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Stephen E. Hare
Executive Vice President and
Chief Financial Officer
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EXHIBIT 99.1
AMF Bowling Worldwide, Inc. (the "Company" or "AMF") today announced operating
results for the three months ended March 31, 2000. The Company reported
consolidated revenue of $209.5 million, a 3.4% increase compared with $202.6
million for the same period in 1999. Consolidated EBITDA for the three months
ended March 31, 2000 was $57.1 million, an increase of 1.2% compared with $56.4
million for the same prior year period. (EBITDA is a measure of operating cash
flow which represents operating income before interest, taxes, depreciation,
amortization and non-operating expenses.)
Operating Results
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For the first quarter of 2000, Bowling Centers reported revenue of $174.1
million, an increase of 0.9% compared with $172.6 million for the same period in
1999, including the impact of closing 10 centers since March 31, 1999. On a
worldwide basis, constant center revenue was up 1.7% for the quarter.
EBITDA for the first quarter of 2000 was $58.0 million, a decrease of 4.1%
compared with $60.5 million for the first quarter of 1999. EBITDA margin was
33.3% in the first quarter of 2000 compared with 35.1% for the same period in
1999. The lower EBITDA margin in 2000 was primarily attributable to higher
operating expenses and a change in the revenue mix, including higher food and
beverage sales.
For the first quarter of 2000, Bowling Products reported revenue of $38.4
million, an increase of 20.0% compared with revenue of $32.0 million for 1999.
The increase in revenue primarily reflects improved NCP sales to Europe and
Japan and improved Modernization and Consumer Products sales to North America,
Japan and Europe. EBITDA for the first quarter of 2000 was $2.5 million compared
with $(0.6) million for the same period in 1999.
New center package shipments for the first quarter of 2000 totaled 360 units
compared with 269 units for the same period in 1999.
Consolidated Operating Results
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For the first quarter of 2000, net loss was $5.6 million, compared with a net
loss of $12.1 million, for the same period in 1999. Equity in loss of joint
ventures was $0.1 million in the first quarter of 2000 compared with $5.5
million in the first quarter of 1999.
Financing Update
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At March 31, 2000, AMF had total debt of $1,037.9 million compared with $1,048.6
million at December 31, 1999. Of the $355 million revolver facility, $165.0
million was outstanding at March 31, 2000.
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As the largest owner and operator of bowling centers in the world, AMF is a
leading provider of family fun and recreation. The Company owns and operates 533
bowling centers throughout the world, with 413 centers in the U.S. and 120
centers in 9 other countries. AMF is also a world leader in the manufacturing
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and marketing of bowling products, manufactures and sells the PlayMaster,
Highland and Renaissance brands of billiards tables, and owns the Michael Jordan
Golf Company.
# # # # #
Statements in this report about AMF's future plans are forward-looking
statements. A number of important factors could cause actual results to differ
materially from those anticipated and projected by forward-looking information.
The factors include, but are not limited to, changes in acquisition
opportunities, the development and growth of new bowling markets, the sales of
products in those markets, the generation of timely and sufficient cash flow to
pay principal and interest on indebtedness, an adverse legal judgment, an
increase in competition, a change in economic conditions including recent
adverse developments in Asia Pacific markets, foreign currency volatility, and
political acts or regulatory changes. Additional information on factors that
could affect the Company's financial results are contained in the Company's SEC
filings, including its Annual Report on Form 10-K for the year ended December
31, 1999, filed with the U.S. Securities and Exchange Commission.
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AMF GROUP HOLDINGS INC. AND SUBSIDIARIES (1)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in millions)
Three Months Ended
March 31,
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2000 1999
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Operating revenue $209.5 $202.6
Operating expenses (2) 152.4 146.2
Depreciation and amortization 33.2 33.1
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Operating income 23.9 23.3
Interest expense 29.1 25.9
Other non-operating (income) expenses (0.7) 2.5
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Loss before income taxes (4.5) (5.1)
Provision for income taxes 1.0 1.5
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Net loss before equity in loss of joint ventures (5.5) (6.6)
Equity in loss of joint ventures (0.1) (5.5)
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Net loss $(5.6) $(12.1)
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Selected Data:
EBITDA (3) $57.1 $ 56.4
EBITDA margin 27.3% 27.8%
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(1) AMF Group Holdings Inc. is a holding company, and its primary assets are
investments in subsidiaries including AMF Bowling Worldwide, Inc. which is
principally engaged in two business segments: (i) operation of bowling
centers and (ii) manufacturing and marketing of bowling products.
(2) Operating expenses represent costs of goods sold, bowling center operating
expenses and selling, general, and administrative expenses.
(3) Represents a measure of operating cash flow defined as operating income
before interest, taxes, depreciation, amortization, and non-operating
expenses.
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AMF GROUP HOLDINGS INC. AND SUBSIDIARIES (1)
SEGMENT INFORMATION (unaudited)
(in millions)
<TABLE>
<CAPTION>
First Second Third Fourth
Quarter Quarter Quarter Quarter Period
---------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
2000 Revenue
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Bowling Centers $174.1 $174.1
Bowling Products 38.4 38.4
Intersegment Elimination (3.0) (3.0)
---------- --------- -------- -------- --------
TOTAL $209.5 $209.5
1999 Revenue
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Bowling Centers $172.6 $129.3 $125.9 $157.9 $585.7
Bowling Products 32.0 38.9 60.7 37.7 169.3
Intersegment Elimination (2.0) (7.1) (3.8) (9.4) (22.3)
---------- --------- -------- -------- --------
TOTAL $202.6 $161.1 $182.8 $186.2 $732.7
---------- --------- -------- -------- --------
2000 Recurring EBITDA (3) (4)
- -----------------------------
Bowling Centers $58.0 $58.0
Bowling Products 2.5 2.5
Corporate (3.4) (3.4)
Intersegment Elimination -- --
---------- --------- -------- -------- --------
TOTAL $57.1 $57.1
1999 Recurring EBITDA (3) (4)
- ------------------------------
Bowling Centers $60.5 $23.0 $18.0 $42.4 $143.9
Bowling Products (0.6) 0.0 5.1 3.5 8.0
Corporate (3.5) (3.7) (4.0) (3.3) (14.5)
Intersegment Elimination (0.0) (0.1) (0.1) (0.1) (0.3)
---------- --------- -------- -------- --------
TOTAL $56.4 $19.2 $19.0 $42.5 $137.1
</TABLE>
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See notes 1 and 3 to Condensed Consolidated Statements of Operations.
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(4) Recurring EBITDA excludes non-recurring restructuring, asset impairment and
other special charges of approximately $8.5 million, $8.1 million and $26.5
million, respectively, recorded by the Company in the third quarter of 1999
