UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the quarterly period ended October 1, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the transition period from __________ to __________
Commission file number 0-22639
CHAMPPS ENTERTAINMENT, INC.
(Exact name of registrant as specified in its charter)
Delaware 04-3370491
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5619 DTC Parkway, Suite 1000, Englewood, Colorado 80111
(Address of principal executive offices) (Zip Code)
(303) 804-1333
(Registrant's telephone number, including area code)
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 Resolution S-K is not contained herein, and will not be contained to the best
of the registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of the Form 10-K: |_|
Number of shares of Common Stock, $.01 par value, outstanding at November 6,
2000: 11,871,527.
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
CHAMPPS ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
October 1, July 2,
2000 2000
------------- -----------
ASSETS:
Current assets:
Cash and cash equivalents $ 6,068 $ 4,373
Restricted cash, current 445 437
Accounts receivable, net 1,846 1,512
Inventories 1,935 2,022
Prepaid expenses and other current assets, net 1,381 1,320
Net assets held for sale - 452
------------- -----------
Total current assets 11,675 10,116
Property and equipment, net 52,545 52,555
Goodwill 3,777 3,825
Other assets, net 1,122 597
------------- -----------
Total assets $ 69,119 $ 67,093
============= ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 4,520 $ 4,507
Accrued expenses 8,066 7,520
Current portion of capital lease obligation 1,461 1,873
Current portion of note payable 538 657
------------- -----------
Total current liabilities 14,585 14,557
Capital lease obligation, net of current portion 1,966 2,191
Note payable, net of current portion 14,999 14,603
Other long-term liabilities 5,300 5,620
------------- -----------
Total liabilities 36,850 36,971
------------- -----------
Commitments and contingencies (Note 3 and 5)
Stockholders' equity:
Common stock ($.01 par value per share;
authorized 30,000 shares and 11,860
and 11,659 issued and outstanding at
October 1, 2000 and July 2, 2000, respectively) 118 117
Additional paid-in capital 79,837 79,389
Accumulated deficit (47,686) (49,384)
------------- -----------
Total stockholders' equity 32,269 30,122
------------- -----------
Total liabilities and stockholders' equity $ 69,119 $ 67,093
============= ===========
See notes to unaudited consolidated financial statements.
<PAGE>
CHAMPPS ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended October 1, 2000 and October 3, 1999 (Dollars in
thousands, except per share data)
(Unaudited)
Three Months Ended
-----------------------
October 1, October 3,
2000 1999
---------- -----------
Revenues:
Sales $ 32,910 $ 25,489
Franchising and royalty, net 173 183
---------- -----------
Total revenues 33,083 25,672
---------- -----------
Costs and expenses:
Restaurant operating expenses:
Product costs 9,521 7,517
Labor costs 10,633 8,697
Other operating expenses 4,802 4,064
Occupancy 2,637 2,298
Preopening 243 711
Depreciation and amortization 1,388 1,081
---------- -----------
Total restaurant operating expenses 29,224 24,368
General and administrative expenses 1,759 1,798
Exit and other costs - 460
---------- -----------
Total costs and expenses 30,983 26,626
---------- -----------
Income (loss) from operations 2,100 (954)
Other expense, net 312 167
---------- -----------
Net income (loss) before taxes 1,788 (1,121)
Provision for Income Taxes 90 -
---------- -----------
Net income (loss) after taxes $ 1,698 $ (1,121)
========== ===========
Basic income (loss) per share: $ 0.15 $ (0.10)
========== ===========
Diluted income (loss) per share: $ 0.14 $ (0.10)
========== ===========
Basic weighted average shares outstanding 11,681 11,651
Diluted weighted average shares outstanding 11,981 11,651
See notes to unaudited consolidated financial statements.
<PAGE>
CHAMPPS ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended October 1, 2000 and October 3, 1999
(Dollars in thousands)
(Unaudited)
October 1, October 3,
2000 1999
--------- ----------
Cash flows from operating activities:
Net income (loss) $ 1,698 $ (1,121)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 1,528 1,153
Gain on sale of asset held for sale (72) -
Loss on disposal of property and equipment 4 -
Impairment, exit costs and other charges - 460
Changes in assets and liabilities, net of dispositions:
Restricted cash balances (8) 205
Changes in current assets and liabilities, net 251 (802)
Changes in other long-term assets and liabilities, net (499) 1,510
--------- ----------
Net cash provided by operating activities 2,902 1,405
--------- ----------
Cash flows from investing activities:
Purchase of property and equipment (1,474) (4,915)
Net proceeds from net assets held for sale 524 768
--------- ----------
Net cash used in investing activities (950) (4,147)
--------- ----------
Cash flows from financing activities:
Proceeds from issuance of common stock 103 14
Repayment of debt (860) (536)
Proceeds from tenant improvement note payable 500
--------- ----------
Net cash used in financing activities (257) (522)
--------- ----------
Net increase (decrease) in cash and cash equivalents 1,695 (3,264)
Cash and cash equivalents, beginning of period 4,373 7,242
--------- ----------
Cash and cash equivalents, end of period $ 6,068 $ 3,978
========= ==========
Non-cash exercise of common stock options $ 347 $ -
========= ==========
(See note 7)
See notes to unaudited consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
CHAMPPS ENTERTAINMENT, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
Three Months Ended October 1, 2000
(Amounts in thousands)
(Unaudited)
Accumulated
Additional Other
Common Paid-in Comprehensive Accumulated
Shares Stock Capital Loss Deficit Total
------- ------- ------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Balance, July 2, 2000 11,659 $ 117 $79,389 $ - $ (49,384) $30,122
Common shares issued 9 - 30 - - 30
Stock options 192 1 418 - - 419
Net income - - - - 1,698 1,698
------- ------- ------- ------- ---------- -------
Balance, October 1, 2000 11,860 $ 118 $79,837 $ - $ (47,686) $32,269
======= ======= ======= ======= ========== =======
</TABLE>
See notes to unaudited consolidated financial statements.
<PAGE>
CHAMPPS ENTERTAINMENT, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Three Months Ended October 1, 2000 and March 28, 1999
(Amounts in thousands, except share data)
(Unaudited)
1. Background, Basis of Presentation and Business Activities of the Company
Background
Champps Entertainment, Inc. (the "Company"), formerly known as Unique Casual
Restaurants, Inc., is a Delaware corporation formed on May 27, 1997 in
connection with a spin-off to holders of the common stock of DAKA International,
Inc. ("DAKA International"). At inception, and continuing through November 1998,
the Company's principal business activities were to own and operate the
restaurant operations previously operated by various subsidiaries and divisions
of DAKA International prior to the formation and the spin-off of the Company.
The restaurant operations at the time of the spin-off included the Company,
Champps Operating Corporation, Fuddruckers, Inc. ("Fuddruckers"), the Great
Bagel & Coffee Company ("Great Bagel & Coffee"), Casual Dining Ventures, Inc.
("CDVI") and Restaurant Consulting Services, Inc. ("RCS"). On November 24, 1998,
the Company completed the sale of all of the outstanding common stock of
Fuddruckers to King Cannon, Inc. Great Bagel & Coffee and CDVI ceased operations
on June 28, 1998. The Company sold its interest in RCS on May 24, 1999. At
October 1, 2000, the Company's principal business activity is to own, operate
and franchise Champps Americana casual dining restaurants within a single
business segment.
Basis of Presentation of Consolidated Financial Statements
These consolidated financial statements do not include certain information and
footnotes required by generally accepted accounting principles for complete
financial statements. However, in the opinion of management, all adjustments
considered necessary for a fair presentation have been included and are of a
normal, recurring nature. Operating results for the three months ended October
1, 2000 are not necessarily indicative of the results that may be expected for
the fiscal year ending July 1, 2001. These statements should be read in
conjunction with the consolidated financial statements and footnotes included in
the Company's Annual Report on Form 10-K for the year ended July 2, 2000. The
accounting policies used in preparing theses consolidated financial statements
are consistent with those described in the Company's Annual Report on Form 10-K.
2. Significant Accounting Policies
Earnings Per Share
Basic earnings per share is computed by dividing income available to common
stockholders by the weighted-average number of common shares outstanding for the
period. Diluted earnings per share reflects the potential dilution that could
occur if outstanding options and warrants were exercised resulting in the
issuance of common stock. For purposes of the income per share calculations for
the three months ended October 1, 2000, stock options have been included for the
diluted computation. Approximately 300,000 dilutive shares have been included in
the diluted income per share computation. No adjustments were made to net income
in computing diluted income per share. For purposes of the income per share
calculations for the three months ended October 3, 1999, stock options have not
been included for the diluted computation as the inclusion of these options
would have been anti-dilutive.
<PAGE>
Reclassifications
Certain amounts in the fiscal 2000 consolidated financial statements have been
reclassified to conform to the fiscal 2001 presentation.
3. Commitments and Contingencies
Fuddruckers Indemnity
In connection with the sale of Fuddruckers, the Company was required to
establish a $1,000 cash escrow to be held for payment of certain claims for
indemnification. Such escrow does not limit the Company's maximum exposure for
indemnification claims. However, the Company believes the risk of a claim for
indemnification exceeding the balance of the escrowed amount is remote. As of
October 1, 2000, a total of approximately $636 was disbursed for amounts
presented to the Company by King Cannon for indemnification. Certain of these
amounts are currently being disputed. The undistributed amount is reported as
part of the restricted cash balance and classified as a current asset.
Restricted Cash
In connection with the sale of certain predecessor companies, the Company
deposited approximately $2,500 to escrow agents to be held pending resolution of
certain contingent obligations discussed further below. At October 1, 2000, $409
continues to be held in escrow and is reported as restricted cash. This amount
includes funds held in connection with the sale of Fuddruckers for payment of
certain claims for indemnification. The Company also has an additional $36 in
restricted cash serving as collateral for a letter of credit relative to the
construction of the restaurant located in the Village of Lombard, Illinois.
Litigation
The Company assumed certain contingent liabilities of DAKA International in
connection with the spin-off and assumed certain contingent liabilities of
Fuddruckers for periods prior to its sale to King Cannon. The Company is also a
party to various lawsuits arising in the ordinary course of its business. The
Company believes and based upon consultation with legal counsel, that the
ultimate collective outcome of these matters will not have a material adverse
effect on the Company's consolidated financial condition, results of operations
or cash flows.
In the third quarter of fiscal 2000, a Washington, D.C. superior court jury
awarded a former Daka, Inc. (a former subsidiary of DAKA International, "Daka")
employee $187 in compensatory damages and $4,813 in punitive damages based on
the employee's claim of negligent supervision and retaliation due to alleged
conduct that occurred in 1996 at a former Daka food service location. While Daka
was formerly a subsidiary of DAKA International and while DAKA International is
now a subsidiary of Compass Group, PLC., the events at issue in the case took
place while a predecessor company of Champps owned DAKA International. On
September 20, 2000, Daka filed a Notice of Appeal with the Court of Appeals for
the District of Columbia. The Company may be liable for the payment of any
amounts ultimately due by Daka upon final determination of the case. The Company
has not accrued any amounts related to the punitive damages in this matter. Any
such amounts will be reported in the period that payment becomes probable. Based
upon its analysis, and the advice of counsel, the Company believes that the
ultimate outcome of this matter will not have a material adverse effect on the
Company's financial position or results of operations.
4. Exit and Other Costs
In the first quarter of fiscal 2000, the Company recorded additional exit and
other costs of $460 related to severance and other expenses associated with the
consolidation, relocation of the headquarters to Englewood, Colorado and early
termination of its headquarters' lease in Danvers, Massachusetts. As of October
1, 2000, the Company had utilized $1,576 for employee severance, relocation and
lease related expenses.
<PAGE>
5. Reserve Disclosure
The Company had previously recorded liabilities associated with the activities
of certain predecessor companies which were either spun-off or sold to other
entities. In addition, the Company previously recorded exit costs associated
with the Company's relocation to Denver, Colorado. The following table displays
the activity and balances relating to these reserves during the three month
period ended October 1, 2001:
<TABLE>
<CAPTION>
Champps Predecessor Assets Held Total
Obligations Obligations for Sale Reserves
------------ ------------ ------------ ----------
<S> <C> <C> <C> <C>
Balance at July 2, 2000 $ 838 $ 4,352 $ 450 $ 5,640
Expense (income) recognition 326 - (72) 254
Deductions (560) (302) (378) (1,240)
Revision to estimate - - - -
------- ------- ------- -------
Balance at October 1, 2000 $ 604 $ 4,050 $ - $ 4,654
======= ======= ======= =======
</TABLE>
The reserves are incorporated into the balances for accrued expenses and other
long-term liabilities.
6. Statements of Cash Flows
General and administrative expenses include depreciation expense on corporate
assets of $92 and $70 in the three months ended October 1, 2000 and October 3,
1999 respectively. General and administrative expenses also include amortization
expense of $48 and $2 for the three months ended October 1, 2000 and October 3,
1999 respectively.
7. Stock Option Plan
During the three months ended October 1, 2000, the Company granted options to
employees to acquire approximately 184,750 shares of common stock at an exercise
price of $5.75 per share. Since the grant price was in excess of the market
price at the time of the grant, the Company has not recorded any compensation
expense related to the grants in the accompanying consolidated financial
statements.
On September 28, 2000, the Compensation Committee of the Company's Board of
Directors amended certain terms of employment of William H. Baumhauer, the
Company's Chairman, President and CEO, including the extension of his employment
contract through June 30, 2003 and the extension of the expiration date of his
remaining options to purchase 1,009,000 shares of the Company's common stock
from June 30, 2001 to June 30, 2003. Of the options extended, 750,000 have an
exercise price of $4.00. Though this price was in excess of the fair market
value of the Company's common stock on the date of original grant (July 1,
1999), it was below the fair market value of the Company's common stock on the
date the options were extended ($4.625). The vesting date of these options was
extended from December 24, 2000 to December 24, 2001 in connection with the
options' extension. As a result of these changes to the options' terms, the
Company will recognize compensation expense of $468 during the period from the
date of extension through the new vesting date. On that same date, Mr.
Baumhauer, exercised options to purchase 178,000 shares of the Company's common
stock at an average price of $1.95 per share. The Compensation Committee also
approved a secured loan of approximately $550 by the Company to Mr. Baumhauer to
fund the exercise price of the options and the income tax liability incurred by
him upon such exercise, which is based on the difference between the option
exercise price and the value of the shares on the date of exercise. The loan is
secured by the stock acquired upon the exercise of the options and is a full
recourse personal liability of Mr. Baumhauer. The loan accrues interest at the
rate of 9% per annum, payable at maturity on September 30, 2003.
<PAGE>
ITEM 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition
Forward-Looking Statements
The matters discussed in the following Management's Discussion and Analysis of
Results of Operations and Financial Condition of the Company and elsewhere in
this Quarterly Report on Form 10-Q, which are not historical information, are
forward-looking statements within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange Act. Words such as "believe," "anticipate,"
"estimate," "project," "plan," "expect," and similar expressions are intended to
identify forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of their
respective dates. Forward-looking statements involve risks and uncertainties,
many of which are beyond the Company's control. Should one or more of these
risks or uncertainties materialize, or should any of the underlying assumptions
prove incorrect, actual results of current and future operations may vary
materially from those anticipated, estimated or projected. In addition to the
factors set forth in the Company's Annual Report on Form 10-K for the fiscal
year ended July 2, 2000, factors that may cause such a difference include, among
others, the following: competition among restaurant companies for attractive
sites and unforeseen events which increase the cost to develop and/or delay the
development and opening of new restaurants; the availability and terms of
financing for the Company and any changes to that financing; the Company's
ability to manage, within acceptable parameters, contingencies associated with
its former businesses including Fuddruckers and its former foodservice and Great
Bagel & Coffee businesses; the effectiveness of initiatives to lower selling,
general and administrative expenses and to improve operations within Champps,
and the Company's ability to open new restaurants consistent with its plans; the
Company's ability to resolve its current litigation actions favorably; the
issuance and renewal of licenses and permits for restaurant development and
operations, including the sale of alcoholic beverages.
RESULTS OF OPERATIONS
Overview
The Company reported net income of $1,698 for the quarter ended October 1, 2000,
compared with a net loss of $1,121, for the comparable quarter last year.
Included in the net loss for the quarter ended October 3, 1999, were $460 of
additional exit and other costs associated with the consolidation and relocation
of the Company's corporate offices to Englewood, Colorado.
Fiscal year 2000 was a fifty-three week year. Accordingly, the quarter ended
October 1, 2000 contains 13 weeks of operating results compared to 14 weeks of
operating results for the first quarter of fiscal 2000.
<PAGE>
Operations
The following table sets forth, for the periods presented, certain financial
information for the Company.
<TABLE>
<CAPTION>
Three Months Ended
------------------------------
October 1, October 3,
2000 1999
------------- -------------
<S> <C> <C>
Restaurant Sales $ 32,910 $ 25,489
============= =============
Sales from Champps restaurants 100.0% 100.0%
Product costs (28.9%) (29.5%)
Labor costs (32.3%) (34.1%)
Operating expenses (14.6%) (15.9%)
Occupancy (8.0%) (9.0%)
Preopening (.7%) (2.8%)
Depreciation and amortization (4.3%) (4.3%)
------------- -------------
Restaurant contribution 11.2% 4.4%
============= =============
Restaurant contribution $ 3,686 $ 1,121
Franchising and royalty income 173 183
------------- -------------
Restaurant, franchising and royalty contribution 3,859 1,304
General and administrative expenses 1,759 1,798
------------- -------------
Income (loss) from restaurant and franchising
operations $ 2,100 $ (494)
============= =============
Number of restaurants (end of period)
Company-owned 25 17
Franchised 13 12
------------- -------------
Total restaurants 38 29
============= =============
</TABLE>
Sales in Company-owned restaurants increased $7,421, or 29.1%, to $32,910 for
the quarter ended October 1, 2000 compared with $25,489 for the quarter ended
October 3, 1999. This increase results from the opening of additional
restaurants between periods and an increase in same store sales of 1.8%.
Restaurant contribution as a percentage of sales improved 6.8% to 11.2% of sales
for the quarter as compared to a year ago. This improvement was a result of
operating efficiencies realized during the quarter and in improved operating
margins in all areas. Restaurant contribution increased $2,565 or 228.8% for the
quarter as compared to a year ago. This improvement results from increased
restaurant contribution margins and increased revenues compared to the quarter
of a year ago.
Restaurant franchising and royalty contribution decreased $10 for the quarter
ended October 1, 2000 as compared with the comparable period last year. This
decrease results from the acquisition by the Company of two formerly franchised
restaurants located in Eden Prairie and Minnetonka, Minnesota and the subsequent
loss of franchise income from these restaurants.
General and administrative expenses decreased $39, or 2.2%, to $1,759 for the
quarter ended October 1, 2000 compared with $1,798 for the quarter ended October
3, 1999. This decrease results from a lower overhead cost structure associated
with the Company's relocation to Englewood, Colorado.
<PAGE>
FINANCIAL CONDITION AND LIQUIDITY
The working capital needs of companies engaged in the restaurant industry are
generally low as sales are made for cash, and purchases of food and supplies,
and other operating expenses are generally paid within 30 to 60 days after
receipt of invoices. Funding for expansion during fiscal year 2001 and fiscal
year 2000 was generally provided through available cash balances, proceeds from
sale-leaseback facilities, mortgage financing and tenant improvement allowances.
Capital expenditures were $1,474 and $4,915 for continuing operations,
respectively, for the three months ended October 1, 2000 and October 3, 1999,
respectively.
As of October 1, 2000, the Company's unrestricted cash balance was $6,068 and
the restricted cash balance was $445. The Company anticipates that it will
generate positive cash flows from operations for the remainder of fiscal year
2001; however, there are also significant capital expenditures anticipated
during the balance of fiscal year 2001. Capital expenditures for the balance of
fiscal year 2001 are anticipated to be approximately $12,526, which will be
incurred primarily for the construction of new restaurants and for upgrades to
existing restaurants.
For the three months ended October 1, 2000, the Company had generated cash flows
from operating activities of $2,902. During the same period, the Company used
net cash in financing activities of $257. This amount primarily consists of
funds received from a tenant improvement note payable of $500, and the repayment
of debt of $860. The Company used $950 in investing activities for the same
period. This amount primarily consists of the purchase of property and equipment
of $1,474 for the one Champps restaurant opened during the period and for
improvements and remodeling to existing restaurants, less $524 received from the
sale of a former Fuddrucker's restaurant location.
The Company has a commitment from CAPTEC Financial Group for $3,074 to
consummate a sale-leaseback transaction with respect to the Company's Las
Colinas, Texas, Champps Americana restaurant. The Company expects to complete
this transaction in November 2000.
The Company also anticipates that there will be cash payments for the balance of
fiscal year 2001 associated with liabilities previously recorded and related to
the sale of predecessor companies. These liabilities consist of prior year
insurance claims, tax audits and legal settlements. These expenditures are
estimated to range between $1,500 and $2,500 during the balance of fiscal year
2001.
Inflation and changing prices have had no measurable impact on net sales and
revenue or income from continuing operations during the last three fiscal years.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
The market risk exposure inherent in the Company's financial instruments and
consolidated financial position represents the potential losses arising from
adverse changes in interest rates. The Company is exposed to such interest rate
risk primarily in its significant investment in cash and cash equivalents and
the use of fixed and variable rate debt to fund its acquisitions of property and
equipment in past years and the implicit investment rate in the Company's
sale-leaseback arrangements.
Market risk for cash and cash equivalents and fixed rate borrowings is estimated
as the potential change in the fair value of the assets or obligations resulting
from a hypothetical ten percent adverse change in interest rates, which would
not have been significant to the Company's financial position or results of
operations during the first quarter of fiscal year 2001. The effect of a similar
hypothetical change in interest rates on the Company's variable rate debt and
the investment rates implicit in the Company's sale-leaseback arrangements also
would have been insignificant due to the immaterial amounts of borrowings
outstanding under the Company's credit arrangements.
<PAGE>
PART II - OTHER INFORMATION
Item 1: Legal Proceedings.
See Litigation in "Notes to Unaudited Consolidated Financial Statements."
Item 2: Changes in Securities and Use of Proceeds.
Not Applicable
Item 3: Defaults upon Senior Securities.
Not Applicable
Item 4: Submission of Matters to a Vote of Security Holders.
No matters were submitted to a vote of the security holders.
Item 6: Exhibits and Reports on Form 8-K
(a) Exhibits
Not applicable
(b) Reports on Form 8-K
On June 29, 2000, the Company acquired two Champps Americana restaurants,
one located in Eden Prairie, Minnesota, and one located in Minnetonka,
Minnesota, from existing fra nchisees for $11,350,000 in the aggregate.
The acquisitions were financed in part with the proceeds from two loans in
the aggregated amount of $9,500,000 provided by FINOVA Capital Corporation
secured in part by the acquired assets.
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.
CHAMPPS ENTERTAINMENT, INC.
(Registrant)
By: /s/William H. Baumhauer
William H. Baumhauer
Chairman of the Board, President and
Chief Executive Officer
By: /s/ Frederick J. Dreibholz
Frederick J. Dreibholz
Chief Financial Officer and Treasurer
(Principal Financial and
Accounting Officer)
November 13, 2000
