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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIRES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 11, 1999
Favorite Brands International, Inc.
and the Guarantors identified in Footnote (1) below
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 333-67221 75-2608980
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(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
2121 Waukegan Road, Bannockburn, Illinois 60015
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
1) The following domestic direct subsidiaries of Favorite Brands
International, Inc. are Guarantors of the Company's Senior Notes and are
Co-Registrants, each of which is incorporated in the jurisdiction and has
the I.R.S. Employer Identification Number indicated: Trolli Inc., a
Delaware corporation (52-1716800) and Sather Trucking Corp., a Delaware
corporation (41-1849044).
Registrant's telephone number, including area code: (847) 405-5800
Item 5. Other Events
As disclosed on Form 8-K filed on April 14, 1999 with the Securities and
Exchange Commission (the "Commission"), on March 30, 1999 Favorite Brands
International Inc. (the "Company") filed in the United States Bankruptcy Court
(the "Court") for the District of Delaware voluntary petitions for relief under
Chapter 11 of Title 11 of the United States Code, case number 99-726 (PJW).
The Company is not filing its report on Form 10-Q for the quarter ended March
27, 1999, as it currently has a No-Action letter pending with the Commission
seeking relief from Form 10-Q and Form 10-K filings as required by the
Securities Exchange Act of 1934, as amended. The Company's request was filed
with the Commission on April 26, 1999.
In lieu of filing Forms 10-Q and Forms 10-K, the Company is proposing to file
under cover of a Form 8-K, copies of monthly operating reports filed with the
United States Trustee's office and the United States Bankruptcy Court for the
District of Delaware within fifteen days after such filing. As of May 11, 1999,
the filing date for the Company's report on Form 10-Q for the quarter ended
March 27, 1999, the Company has not received the Commission's response regarding
the No-Action
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letter filed. Accordingly, the Company is filing certain financial information
on Form 8-K for the third quarter of fiscal year 1999.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Financial Statements of Businesses Acquired. Not applicable.
(b) Pro Forma Financial Information. Not applicable.
(c) Exhibits.
99.1 Consolidated Financial Statements (Unaudited)
Consolidated Balance Sheets as of March 27, 1999 and June 27, 1998.
Consolidated Statements of Operations for the thirteen and thirty-
nine weeks ended March 27, 1999 and March 28, 1998.
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.
Favorite Brands International, Inc.
Dated: May 11, 1999 By: /s/ Steven F. Kaplan
-------------------------------------------------
President, Chief Operating Officer and
Chief Financial Officer
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EXHIBIT INDEX
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<CAPTION>
Exhibit No. Description of Exhibit
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<S> <C>
99.1 Consolidated Financial Statements (Unaudited):
Consolidated Balance Sheets as of March 27, 1999 and June
27, 1998;
Consolidated Statements of Operations for the thirteen and
thirty-nine weeks ended March 27, 1999 and March 28, 1998
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FAVORITE BRANDS INTERNATIONAL, INC.
AND SUBSIDIARIES
(A Wholly-Owned Subsidiary of Favorite Brands International Holding Corp.)
(Debtor-In-Possession)
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands, Except Per Share Data)
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<CAPTION>
March 27, June 27,
ASSETS 1999 1998
------ -------- --------
(Unaudited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents............................................ $ 10,191 $ 6,440
Accounts receivable, less allowance of $18,500 and $14,600 at
March 27, 1999 and June 27, 1998, respectively..................... 59,251 48,999
Inventories.......................................................... 71,790 98,232
Deferred income taxes................................................ 17,846 17,846
Prepaid expenses and other current assets............................ 4,014 3,363
-------- --------
Total current assets............................................... 163,092 174,880
-------- --------
Property, Plant and Equipment, at Cost:
Land................................................................. 5,200 5,200
Buildings............................................................ 67,606 67,123
Machinery and equipment.............................................. 201,052 200,145
Construction in progress............................................. 48,112 15,561
-------- --------
321,970 288,029
Less accumulated depreciation........................................ 69,839 49,129
-------- --------
252,131 238,900
-------- --------
Other Assets:
Intangible assets, net............................................... 337,490 355,617
Prepaid expenses and other assets.................................... 1,564 1,619
Deferred income taxes................................................ 46,821 31,845
-------- --------
385,875 389,081
-------- --------
$801,098 $802,861
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1
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FAVORITE BRANDS INTERNATIONAL, INC.
AND SUBSIDIARIES
(A Wholly-Owned Subsidiary of Favorite Brands International Holding Corp.)
(Debtor-In-Possession)
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
March 27, June 27,
LIABILITIES AND STOCKHOLDER'S EQUITY 1999 1998
------------------------------------ -------- --------
(Unaudited)
<S> <C> <C>
Current Liabilities:
Accounts payable and accrued liabilities............................. $ 44,946 $ 110,485
Debt................................................................. 201,000 2,440
Other current liabilities............................................ 1,618 916
--------- --------
Total current liabilities 247,564 113,841
--------- --------
Noncurrent Liabilities:
Long-term debt....................................................... - 554,950
Other long-term liabilities.......................................... 1,954 3,020
--------- --------
Total noncurrent liabilities....................................... 1,954 557,970
--------- --------
Liabilities subject to compromise.......................................... 474,846 -
Commitments and Contingencies.............................................. - -
Stockholder's Equity:
Common Stock, $.01 par value; 1,000 shares authorized,
issued and outstanding - -
Additional paid-in capital........................................... 195,751 195,324
Accumulated deficit.................................................. (119,017) (64,274)
--------- --------
Total stockholder's equity......................................... 76,734 131,050
--------- --------
$ 801,098 $802,861
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2
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FAVORITE BRANDS INTERNATIONAL, INC.
AND SUBSIDIARIES
(A Wholly-Owned Subsidiary of Favorite Brands International Holding Corp.)
(Debtor-In-Possession)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands)
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<CAPTION>
Thirteen Weeks Ended Thirty-nine Weeks Ended
-------------------------- ------------------------
March 27, March 28, March 27, March 28,
1999 1998 1999 1998
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net sales.................................................................. $170,104 $187,454 $558,540 $589,406
Costs and expenses:
Cost of sales....................................................... 112,312 119,941 353,431 365,976
Selling, marketing and administrative............................... 68,189 65,165 209,878 182,330
Amortization of intangible assets................................... 4,530 6,184 13,485 15,136
Restructuring and business integration costs........................ 449 3,604 2,639 9,888
-------- -------- -------- --------
185,480 194,894 579,433 573,330
Loss from operations....................................................... (15,376) (7,440) (20,893) 16,076
Nonoperating expenses:
Interest expense.................................................... 14,421 12,881 44,652 38,912
-------- -------- -------- --------
Loss before income taxes, extraordinary charge and
cumulative effect of change in accounting principle...................... (29,797) (20,321) (65,545) (22,836)
(Benefit) provision for income taxes................................ 1 (7,490) (13,305) (7,751)
-------- -------- -------- --------
Loss before extraordinary charge and cumulative effect of change in
accounting principle..................................................... (29,798) (12,831) (52,240) (15,085)
-------- -------- -------- --------
Extraordinary charge - early debt extinguishment,
net of income tax benefit........................................... - - - 4,194
Cumulative effect of change in accounting principle,
net of income tax benefit........................................... - - 2,503 -
-------- -------- -------- --------
Net loss................................................................... $(29,798) $(12,831) $(54,743) $(19,279)
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