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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):
MARCH 24, 2000
MARKETING SPECIALISTS CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 0-24667 04-3411833
(State or other (Commission (IRS employer
jurisdiction of file number) identification no.)
incorporation or
organization)
17855 N. DALLAS PARKWAY, SUITE 200
DALLAS, TEXAS 75287
(Address and zip code of principal executive offices)
Registrant's telephone number, including area code:
(972) 349-6200
----------------------------
Merkert American Corporation
490 Turnpike Street
Canton, Massachusetts 02021
(Former name and address)
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ITEM 5. OTHER EVENTS
On March 24, 2000, the Registrant released certain unaudited financial
statements for the quarter ended December 31, 1999. Such unaudited financial
statements are filed as Exhibit 99.1 hereto.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) EXHIBITS
The following Exhibits are filed herewith:
99.1 Unaudited financial statements of the Registrant for
the quarter ended December 31, 1999.
[SIGNATURE PAGE FOLLOWS]
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MARKETING SPECIALISTS CORPORATION
By: /s/ TIMOTHY M. BYRD
------------------------------------
Timothy M. Byrd
Chief Financial Officer
Date: March 24, 2000
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EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NO. DESCRIPTION
- ------- ------------
<S> <C>
99.1* Unaudited financial statements of the Registrant for the quarter
ended December 31, 1999.
</TABLE>
* filed herewith
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EXHIBIT 99.1
MARKETING SPECIALISTS CORPORATION
COMPARATIVE CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(UNAUDITED)
DECEMBER 31, 1999 DECEMBER 31, 1998
----------------- -----------------
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ -- $ 1,184,693
Restricted cash 1,200,247 9,980,780
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Cash and cash equivalents $ 1,200,247 $ 11,165,473
Accounts receivable net of allowance
for doubtful accounts of $5,730,400
and $1,374,000,respectively 53,578,596 22,333,540
Deferred taxes -- 422,539
Inventory 1,221,028 1,622,536
Income taxes receivable -- 2,647,000
Prepaid expenses and other current assets 2,895,378 595,370
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Total current assets 58,895,249 38,786,458
Deferred taxes -- 1,328,381
Other assets 9,664,208 4,417,651
Property and equipment, net 42,516,264 17,417,362
Intangible assets 336,040,325 126,459,527
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TOTAL ASSETS $ 447,116,046 $ 188,409,379
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 14,395,640 $ 9,293,347
Accrued expenses 31,165,160 21,077,926
Current portion of long-term obligations 48,054,525 10,523,338
Total current liabilities 93,615,325 40,894,611
$100,000,000, 10.125% Senior Subordinated
Notes, due December 15, 2007 100,000,000 --
Long-term obligations less current portion:
Notes payable 70,065,479 61,445,243
Lease obligations 803,704 150,000
Covenants not to compete 21,040,981 11,843,516
Deferred compensation liabilities 35,921,282 1,233,996
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Other liabilities 7,427,642 246,553
Shareholders' equity (deficit): Common stock, $.01 stated value:
Authorized shares - 54,000,000
Issued shares - 14,173,844 and 7,218,000,
respectively 141,959 72,003
Additional paid-in capital 141,579,961 73,989,642
Retained deficit (23,033,207) (1,466,185)
Treasury stock at cost - 39,707 and 0
shares, respectively (447,080) --
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Total shareholders' liability 118,241,633 72,595,460
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 447,116,046 $ 188,409,379
============= =============
</TABLE>
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MARKETING SPECIALISTS CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE QUARTER ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
<S> <C>
Revenues:
Commissions $ 95,548,901
Sales 11,093,247
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Total revenues 106,642,148
Expenses:
Cost of sales 10,509,104
Sales and marketing 63,982,624
General and administrative 22,709,734
Depreciation 1,877,390
Amortization 5,455,637
-------------
Total expenses 104,534,489
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Operating income 2,107,659
Other income (expenses):
Interest expense (5,728,099)
Other income 225,528
-------------
Loss before income taxes (3,394,912)
Income tax expense --
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Net loss (3,394,912)
=============
</TABLE>
