<PAGE> 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)
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<S> <C> <C>
Tennessee 1-8766 62-0854056
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(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
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(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code: (615) 269-1900
Not Applicable
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(Former name or former address, if changed since last report)
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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
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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
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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
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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.
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VOLUNTEER CAPITAL CORPORATION AND SUBSIDIARIES
PRO FORMA CONSOLIDATED CONDENSED BALANCE SHEET
SEPTEMBER 29, 1996
(UNAUDITED IN THOUSANDS)
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<CAPTION>
PRO FORMA PRO FORMA
AS REPORTED ADJUSTMENTS(A) BALANCES(A)
----------- -------------- -----------
ASSETS
<S> <C> <C> <C>
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
======= ======== =======
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See notes to pro forma consolidated condensed financial statements.
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VOLUNTEER CAPITAL CORPORATION AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
NINE MONTHS ENDED SEPTEMBER 29, 1996
(UNAUDITED IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
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<CAPTION>
PRO FORMA PRO FORMA
AS REPORTED ADJUSTMENTS(A) RESULTS(A)
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<S> <C> <C> <C>
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
======== ========
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See notes to pro forma consolidated condensed financial statements.
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VOLUNTEER CAPITAL CORPORATION AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 1995
(UNAUDITED IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
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<CAPTION>
PRO FORMA PRO FORMA
AS REPORTED(L) ADJUSTMENTS(A) RESULTS(A)
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<S> <C> <C> <C>
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
======== ========
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See notes to pro forma consolidated condensed financial statements.
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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:
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<S> <C>
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
========
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(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.
