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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 10-K/A-2
[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended Commission File Number
July 31, 1998 0-24287
BLUE RHINO CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 56-1870472
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
____________________________
104 Cambridge Plaza Drive
Winston-Salem, North Carolina 27104
(Address of principal executive offices)
(336) 659-6900
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Name of each exchange
Title of each class on which registered
------------------- -------------------
None None
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
Common Stock
------------
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X ]. No [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K (229.405 of this chapter) is not contained herein, and
will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [ X ]
At September 30, 1998, the aggregate market value of the registrant's
Common Stock held by non-affiliates of the registrant was approximately
$46,572,185.
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The Nonrecurring charge figure for the Fiscal Year ended July 31, 1998 as
reported in Item 6-Selected Consolidated Financial Data was not updated in the
Registrant's Form 10-K/A-1 filed on February 10, 1999 from the 563 previously
reported to conform with the 476 as set forth in the revised audited financials
contained in the Form 10-K/A-1. This Form 10-K/A-2 is being filed to update the
Nonrecurring charge item for the Fiscal Year ended July 31, 1998. No other
amendments are being reported in connection with this report.
Item 6--Selected Consolidated Financial Data
The following selected consolidated income statement and balance sheet data of
the Company as of and for the fiscal years ended July 31, 1994, July 31, 1995,
July 28, 1996, July 31, 1997 and July 31, 1998 have been derived from the
Company's audited consolidated financial statements. The financial data set
forth below should be read in conjunction with ''Item 7--Management's Discussion
and Analysis of Financial Condition and Results of Operations'' and ''Item 8--
Financial Statements and Supplemental Data--Consolidated Financial Statements of
the Company and Related Notes Thereto'' included elsewhere herein.
<TABLE>
<CAPTION>
Predecessor
Company(1) Fiscal Year
---------------- --------------------------------------------------------------
June 30, July 31, July 31, July 28, July 31, July 31,
1994 1994 1995 1996 1997 1998
---------------- ---------- ----------- ----------- ----------- -----------
(in thousands, except per share and selected operating data)
<S> <C> <C> <C> <C> <C> <C>
Consolidated Statement of Operations Data:
Net sales--distributors....................... $ -- $ -- $ -- $ 2,386 $ 13,060 $27,372
Net sales--direct............................. 393 56 2,728 5,830 1,151 --
----- ------ ------- -------- -------- -------
Total net sales............................ 393 56 2,728 8,216 14,211 27,372
----- ------ ------- -------- -------- -------
Cost of sales--distributors................... -- -- -- 1,811 9,873 20,525
Cost of sales--direct......................... 126 59 3,523 6,089 1,771 --
----- ------ ------- -------- -------- -------
Total cost of sales........................ 126 59 3,523 7,900 11,644 20,525
----- ------ ------- -------- -------- -------
Gross profit (loss)............................. 267 (3) (795) 316 2,567 6,847
----- ------ ------- -------- -------- -------
Operating expenses (income):
Sales and marketing........................... -- -- 532 1,112 1,950 2,392
General and administrative.................... 228 374 2,787 3,192 3,022 3,461
Lease income, net............................. -- -- -- (89) (143) (81)
Depreciation and amortization................. 25 3 284 868 873 1,278
Nonrecurring charges(2)....................... -- -- -- 1,363 970 476
----- ------ ------- -------- -------- -------
Total operating expenses................... 253 377 3,603 6,446 6,672 7,526
----- ------ ------- -------- -------- -------
Income (loss) from operations................... 14 (380) (4,398) (6,130) (4,105) (679)
Other expense (income):
Interest expense.............................. 5 -- 287 1,469 1,665 1,707
Loss on investee.............................. -- -- -- -- -- 324
Other (income) expense, net................... (2) -- (25) (168) (186) (234)
----- ------ ------- -------- -------- -------
Net income (loss).......................... $ 11 $ (380) $(4,660) $ (7,431) $ (5,584) $(2,476)
===== ====== ======= ======== ======== =======
Loss applicable to common
stockholders(3).......................... -- $ (380) $(5,055) $ (8,067) $ (6,271) $(3,072)
===== ====== ======= ======== ======== =======
Loss per common share:
Basic and diluted............................. -- $(0.25) $(3.09) $(4.96) $(3.74) $(1.04)
Pro forma diluted(4).......................... -- -- $(1.08) $(1.72) $(1.27) $(0.61)
Weighted average common shares used in
computing loss per common share:
Basic and diluted............................. -- 1,517 1,638 1,628 1,678 2,945
Pro forma diluted(4).......................... -- -- 4,303 4,313 4,406 5,077
Selected Operating Data:
Retail locations (at period end).............. -- 331 1,608 2,981 4,400 9,500
Cylinder transactions (000's)................. -- 5 306 769 1,239 2,201
July 31, July 31, July 28, July 31, July 31,
--------- ---------- ---------- ---------- ----------
1994 1995 1996 1997 1998
------ ------- -------- -------- -------
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents..................... $ 150 $ 209 $ 1,126 $ 325 $ 5,908
Working capital............................... 109 (3,264) 1,580 737 11,819
Total assets.................................. 631 10,424 11,897 9,974 30,470
Long-term obligations, less current
maturities.................................. 518 1,361 14,174 16,110 260
Total stockholders' (deficit) equity.......... (179) (5,149) (13,217) (18,488) 24,816
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(1) Effective June 30, 1994, the assets of American Cylinder Exchange (the
''Predecessor Company'') were contributed to the Company in exchange for
approximately 98,000 shares of Common Stock which were distributed to the
Predecessor Company's shareholders.
(2) See Note 11 of Notes to Consolidated Financial Statements for an explanation
of the nonrecurring charges.
(3) Includes net loss less redeemable preferred stock dividends of $395, $636,
$687 and $596 for fiscal 1995, 1996, 1997 and 1998, respectively.
(4) The unaudited pro forma information assumes the conversion of Preferred
Stock, Preferred Stock dividends and the exercise of warrants outstanding
(other than the 1998 Warrants) were effective as of the beginning of the
first year presented.
The Company's cost of sales are comprised of a fixed charge per cylinder
transacted which is paid to distributors based upon the type of transaction and
determined on a contractual basis. Cylinder sales have the
2
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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 thereunto duly authorized.
BLUE RHINO CORPORATION
(Registrant)
By: /s/ Mark Castaneda
----------------------------
Chief Financial Officer
DATED: March 18, 1999
