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Previous: INTERMAGNETICS GENERAL CORP, DEF 14A, 2000-09-25 |
Next: BFX HOSPITALITY GROUP INC, 8-K, EX-2.1, 2000-09-25 |
<PAGE>
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 September 8, 2000
(DATE OF EARLIEST EVENT REPORTED)
BFX HOSPITALITY GROUP, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
COMMISSION FILE NUMBER 001-09822
DELAWARE 75-1732794
(STATE OR OTHER JURISDICTION (I.R.S. EMPLOYER IDENTIFICATION NO.)
OF INCORPORATION)
226 BAILEY AVENUE
SUITE 101
FORT WORTH, TEXAS 76107
(ADDRESS OF PRINCIPAL EXECUTIVE (ZIP CODE)
OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (817) 332-4761
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On September 9, 2000, the Company completed the sale of substantially
all of the assets of Cabo Travis, Inc. and Cabo Shepherd, Inc., both Texas
corporations, and subsidiaries of the Company ("Cabo"), to an investment group
headed up by Enron Investment Partners of Houston, Texas pursuant to the terms
of an Asset Purchase Agreement, dated as of September 8, 2000. The purchase
price received at the closing was $3,500,000 in cash.
The assets sold include substantially all of the assets owned by Cabo
and used in connection with its business, including without limitation, all
inventory, tangible personal property, intellectual property rights and
contracts. The purchase price for the subject assets was determined through
negotiations between the Company and the Buyer.
2
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(b) Pro forma financial information.
The following unaudited pro forma statements of operations for the nine months
ended June 30, 2000 and the year ended September 30, 1999 reflect the historical
accounts of the Company for those periods, adjusted to give pro forma effect to
the sale as if the transaction had occurred at the beginning of each period
presented.
The following unaudited pro forma balance sheet as of June 30, 2000 reflects the
historical accounts of the Company as of that date adjusted to give pro forma
effect to the sale as if the transaction had occurred as of June 30, 2000.
The pro forma financial data and accompanying notes should be read in
conjunction with the description of the sale in this Form 8-K, the Consolidated
Financial Statements and related notes included in the Company's 1999 Annual
Report on Form 10-K previously filed with the Securities and Exchange Commission
("SEC"), and the Form 10-Q for the three and nine months ended June 30, 2000
previously filed with the SEC. The Company believes that the assumptions used in
the following statements provide a reasonable basis on which to present the pro
forma financial data. The pro forma financial data is provided for informational
purposes only and should not be construed to be indicative of the Company's
financial condition or results of operations had the sale been consummated on
the dates assumed and are not intended to project the Company's financial
condition on any future date or results of operations for any future period.
3
<PAGE>
PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Pro Forma Adjustments
---------------------------------
Pro
Forma
Historical Cabo Adjustments BFX
------------------------------------------------------------------
(in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Net Revenues $17,212 $4,407 $ - $12,805
------- ------ ----------- -------
Costs and expenses:
Cost of goods sold 4,185 1,211 - 2,974
Selling, general and administrative 12,311 2,571 - 9,740
Write-down of long-lived assets 1,854 854 - 1,000
Depreciation and amortization 1,590 336 - 1,254
------- ------ ----------- -------
Total costs and expenses 19,940 4,972 - 14,968
------- ------ ----------- -------
Net loss before other income (expense)
and income taxes (2,728) (565) - (2,163)
------- ------ ----------- -------
Other income (expense):
Interest income 138 - - 138
Interest expense (92) - - (92)
------- ------ ----------- -------
46 - - 46
------- ------ ----------- -------
Loss before income taxes (2,682) (565) - (2,117)
Income tax benefit (897) (184) - (713)
------- ------ ----------- -------
Net loss $(1,785) $ (381) - $(1,404)
======= ====== =========== =======
Basic and diluted loss
per average common share $(0.44) $(0.35)
======= =======
Weighted average basic and diluted
common shares outstanding 4,018 4,018
======= =======
</TABLE>
4
<PAGE>
PRO FORMA STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
Pro Forma Adjustments
-------------------------------------
Pro
Forma
Historical Cabo Adjustments BFX
------------------------------------------------------------
(in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Net Revenues $ 13,041 $ 3,035 $ - $ 10,006
---------- --------- ----------- ---------
Costs and expenses:
Cost of goods sold 3,063 808 - 2,255
Selling, general and administrative 8,243 1,665 - 6,578
Depreciation and amortization 922 144 - 778
---------- --------- ----------- ---------
Total costs and expenses 12,228 2,617 - 9,611
---------- --------- ----------- ---------
Net income before other income(expense)
And income taxes 813 418 - 395
---------- --------- ----------- ---------
Other income (expense):
Interest income 83 - - 83
Interest expense (21) - - (21)
---------- --------- ----------- ---------
62 - - 62
---------- --------- ----------- ---------
Income before income taxes 875 418 - 457
Income tax expense 374 142 - 232
---------- --------- ----------- ---------
Net income $ 501 $ 276 - $ 225
========== ========= =========== =========
Basic and diluted income per
average common share $ 0.13 $ 0.06
========== =========
Weighted average basic and diluted
common shares outstanding 3,972 3,972
========== =========
</TABLE>
5
<PAGE>
PRO FORMA BALANCE SHEET
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
Pro Forma Adjustments
-----------------------------
Pro
Forma
Historical Cabo Adjustments BFX
------------------------------------------------------
(in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 843 $ - $ 3,200 (1) $ 4,043
Short-term investments 2,833 - 2,833
Accounts receivable 292 - 292
Note receivable 43 - 43
Inventories 213 47 166
Prepaid and other current assets 256 - 256
--------- ------- -------- --------
Total current assets 4,480 47 3,200 7,633
--------- ------- -------- --------
Property, plant and equipment, at cost:
Land, building and improvements 15,573 2,476 13,097
Less: Accumulated depreciation and
amortization (5,635) (664) (4,971)
--------- ------- -------- --------
Net property, plant and equipment 9,938 1,812 8,126
--------- ------- -------- --------
Goodwill, net of amortization of
$2,146,000 2,138 177 1,961
Deferred income taxes 1,726 - (400) (2) 1,326
Other assets, net 134 34 100
--------- ------- -------- --------
$ 18,416 $ 2,070 $ 2,800 $ 19,146
========= ======= ======== ========
Liabilities and Stockholders' Equity
-----------------------------------------
Current liabilities:
Accounts payable $ 589 $ - $ - $ 589
Accrued liabilities 811 - - 811
Accrued EPA costs 1,600 - - 1,600
Income taxes 639 - - 639
--------- ------- -------- --------
Total current liabilities 3,639 - - 3,639
Accrued EPA costs 923 - - 923
--------- ------- -------- --------
Total liabilities 4,562 - - 4,562
--------- ------- -------- --------
Stockholders' equity:
Preferred stock - - -
Common stock 389 389
Additional paid-in capital 16,583 - 16,583
Retained earnings 6,023 730 (3) 6,753
Treasury stock (9,141) - (9,141)
--------- -------- --------
Total stockholders' equity 13,854 - 14,584
--------- -------- --------
$ 18,416 $ - $ 19,146
========= ======== ========
</TABLE>
6
<PAGE>
(1) Reflects an increase in cash as a result of the sale, as follows:
Cash sale price $3,500,000
Less management bonuses 150,000
Less estimated transactions costs 150,000
----------
$3,200,000
==========
(2) Reflects deferred taxes associated with the gain on the sale.
(3) Represents estimated gain as a result of the sale calculated based on the
following assumptions:
Cash sale price $3,500,000
Less net book value of assets sold 2,070,000
Less management bonuses 150,000
Less estimated transactions costs 150,000
Less estimated tax expenses 400,000
----------
Estimated net gain $ 730,000
==========
7
<PAGE>
(c) Exhibits
2.1 Asset Purchase Agreement by and among Cabo Shepherd, Inc., Cabo
Travis, Inc., American Food Classics, Inc., BFX Hospitality
Group, Inc. and Cabo Restaurants, LP, dated as of September 25,
2000.
BFX HOSPITALITY GROUP, INC.
Dated: September 25, 2000 By: /s/ Robert Korman
--------------------------
Robert Korman, Vice President and Chief
Financial Officer
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