<PAGE> 1
SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
<TABLE>
<S> <C>
[ ] Preliminary Proxy Statement [ ] Confidential, for Use of the Commission
Only (as permitted by Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[X] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
</TABLE>
National Beverage Corp.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
[ ] Fee paid previously with preliminary materials:
[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
<PAGE> 2
NATIONAL BEVERAGE CORP.
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TIME: 2:00 P.M. (LOCAL TIME)
DATE: OCTOBER 17, 1997
PLACE: Sheraton Long Beach
333 East Ocean Boulevard
Long Beach, California 90802
At the Annual Meeting of Shareholders of National Beverage Corp. (the
"Company"), and any adjournments or postponements thereof (the "Meeting"), the
following proposals are on the agenda for action by the shareholders:
1. TO ELECT TWO DIRECTORS TO SERVE AS CLASS I DIRECTORS
FOR TERMS OF THREE YEARS.
2. TO TRANSACT SUCH OTHER BUSINESS AS MAY PROPERLY COME
BEFORE THE MEETING.
Only holders of record of common stock, par value $.01 per share, of
the Company, at the close of business on September 2, 1997 are entitled to
notice of, and to vote at, the Meeting.
A complete list of the shareholders entitled to vote at the Meeting
will be available for examination by any shareholder, for any proper purpose, at
the Meeting and during ordinary business hours for a period of ten days prior to
the Meeting at the corporate offices of the Company at One North University
Drive, Fort Lauderdale, Florida 33324, as well as at the Company's offices
located at 14405 East Artesia Boulevard, La Mirada, California 90638.
A Proxy Statement, setting forth certain additional information, and
the Company's Annual Report to Shareholders accompany this Notice of Annual
Meeting.
All shareholders are cordially invited to attend the Meeting in person.
PLEASE COMPLETE AND RETURN THE PROXY IN THE ENCLOSED ENVELOPE addressed to the
Company, since a majority of the outstanding shares entitled to vote at the
Meeting must be represented at the Meeting in order to transact business.
Shareholders have the power to revoke any such proxy at any time before it is
voted at the Meeting and the giving of such proxy will not affect your right to
vote in person at the Meeting. Your vote is very important.
By Order of the Board of Directors,
Nick A. Caporella
Chairman of the Board of Directors,
Chief Executive Officer and President
September 23, 1997
Fort Lauderdale, Florida
<PAGE> 3
PROXY STATEMENT
This Proxy Statement is furnished to shareholders of National Beverage
Corp., a Delaware corporation (the "Company") in connection with the
solicitation, by order of the Board of Directors of the Company (the "Board of
Directors"), of proxies to be voted at the Annual Meeting of Shareholders of the
Company to be held at the Sheraton Long Beach, 333 East Ocean Boulevard, Long
Beach, California 90802, on October 17, 1997, at 2:00 p.m., local time, or any
adjournment or postponement thereof (the "Meeting"). The accompanying proxy is
being solicited by and on behalf of the Board of Directors. The mailing address
of the principal executive offices of the Company is P.O. Box 16720, Fort
Lauderdale, Florida 33318. The approximate date on which this Proxy Statement
and the accompanying form of proxy were first sent to shareholders is September
23, 1997.
Only holders of record of common stock, par value $.01 per share, of
the Company (the "Common Stock") at the close of business on September 2, 1997
(the "Record Date") are entitled to notice of, and to vote at, the Meeting.
A shareholder who gives a proxy may revoke it at any time before it is
exercised by sending a written notice to Joseph G. Caporella, Executive Vice
President and Corporate Secretary, at the address set forth above, by returning
a later dated signed proxy, or by attending the Meeting and voting in person.
Unless the proxy is revoked, the shares represented thereby will be voted as
specified at the Meeting or any adjournment or postponement thereof.
The Annual Report to Shareholders of the Company for the fiscal year
ended May 3, 1997 (the "Annual Report") is being mailed with this Proxy
Statement to all holders of record of the Common Stock as of the Record Date.
Additional copies of the Annual Report will be furnished to any shareholder upon
request. All share information presented in this proxy statement has been
adjusted to give effect to the Company's 100% stock dividend distributed on
October 25, 1996.
Any proposal of a shareholder intended to be presented at the Company's
1998 Annual Meeting of Shareholders must be received by the Company for
inclusion in the Proxy Statement and form of proxy for that meeting no later
than June 19, 1998.
SECURITY OWNERSHIP
- ------------------
PRINCIPAL SHAREHOLDERS
Each holder of Common Stock is entitled to one vote for each share held
of record at the close of business on the Record Date. As of such date,
18,465,628 shares of Common Stock were outstanding. As of the Record Date,
the only persons known by the Company to own of record or beneficially more than
5% of the outstanding Common Stock were the following:
3
<PAGE> 4
<TABLE>
<CAPTION>
AMOUNT AND
NATURE OF
NAME AND ADDRESS BENEFICIAL
OF BENEFICIAL OWNER TITLE OF CLASS OWNERSHIP PERCENT OF CLASS
- ------------------- -------------- ----------- ----------------
<S> <C> <C> <C>
Nick A. Caporella Common Stock 14,267,304(1) 77.3%
One North University Drive
Fort Lauderdale, Florida 33324
IBS Partners Ltd. Common Stock 13,875,936 75.1%
Three Riverway, Suite 440
Houston, Texas 77056
</TABLE>
(1) Includes 13,875,936 shares owned by IBS Partners Ltd. ("IBS"). IBS is a
Texas limited partnership of which Mr. Caporella is the sole general
partner. By virtue of Rule 13d-3 promulgated under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), Mr. Caporella
would be deemed to beneficially own the shares of Common Stock owned by
IBS. Also includes 10,000 shares held by the wife of Mr. Caporella, as
to which Mr. Caporella disclaims beneficial ownership.
MANAGEMENT
The table below reflects as of September 2, 1997 the number of shares
of Common Stock beneficially owned by the directors and each of the executive
officers named in the Summary Compensation Table hereinafter set forth, and the
number of shares beneficially owned by all directors and executive officers as a
group:
AMOUNT AND NATURE OF
NAME OF BENEFICIAL OWNER BENEFICIAL OWNERSHIP PERCENT OF CLASS
- ------------------------ -------------------- ----------------
[S] [C] [C]
Nick A. Caporella 14,267,304(1) 77.3%
Joseph G. Caporella 62,600(2) *
Samuel C. Hathorn 12,160(3) *
S. Lee Kling 74,000(4) *
Joseph P. Klock, Jr 15,000(5) *
George R. Bracken 31,400(6) *
Dean A. McCoy 18,000(2) *
All executive officers and directors 14,486,064(7) 78.4%
as a group (8 in number)
* Less than 1%
(1) Includes 13,875,936 shares held by IBS. Mr. Caporella is the sole
general partner of IBS. Also includes 10,000 shares held by the wife of
Mr. Caporella, as to which Mr. Caporella disclaims beneficial
ownership.
(2) Represent shares issuable upon exercise of currently exercisable
options.
(3) Includes 8,000 shares issuable upon exercise of currently exercisable
options.
(4) Includes 1,000 shares issuable upon exercise of currently exercisable
options.
(5) Includes 9,000 shares issuable upon exercise of currently exercisable
options.
(6) Includes 2,200 shares issuable upon exercise of currently exercisable
options.
(7) Includes 106,400 shares issuable upon exercise of currently exercisable
options.
4
<PAGE> 5
Section 16(a) of the Exchange Act requires the Company's executive
officers, directors and persons who own more than ten percent (10%) of a
registered class of the Company's equity securities to file reports of ownership
and changes in ownership with the Securities and Exchange Commission (the
"Commission"). Executive officers, directors and greater than ten percent (10%)
beneficial owners are required by regulation of the Commission to furnish the
Company with copies of all Section 16(a) forms so filed.
Based solely upon a review of the Forms 3, 4 and 5 and amendments
thereto and certain written representations furnished to the Company, the
Company believes that, during the fiscal year ended May 3, 1997, its executive
officers, directors and greater than ten percent (10%) beneficial owners
complied with all applicable filing requirements.
QUORUM
- ------
The presence, in person or by proxy, of the holders of a majority of
the outstanding shares of Common Stock entitled to vote at the Meeting is
necessary to constitute a quorum.
PROPOSAL FOR ELECTION OF DIRECTOR
- ---------------------------------
The Board of Directors is currently comprised of five directors elected
in three classes (the "Classes"), with two Class I directors, two Class II
directors and one Class III director. Directors in each class hold office for
three-year terms. The terms of the Classes are staggered so that the term of one
Class terminates each year. The term of the current Class I directors expire at
the 1997 Annual Meeting or when their respective successors have been duly
elected and qualified.
The Board of Directors has nominated Joseph G. Caporella and Samuel C.
Hathorn, Jr. for election as directors in Class I with a term of office of three
years expiring at the Annual Meeting of Shareholders to be held in 2000. In
order to be elected as a director, a nominee must receive a plurality of
affirmative votes cast by the shares present or represented at a duly convened
meeting. Shareholders have no right to vote cumulatively.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE NOMINEES FOR THE CLASS
I DIRECTORS.
INFORMATION AS TO NOMINEES AND OTHER DIRECTORS
- ----------------------------------------------
The following information concerning principal occupation or employment
during the past five years and age has been furnished to the Company by the
nominees for the Class I directors, and by the directors in Classes II and III
whose terms expire at the Company's Annual Meeting of Shareholders in 1998 and
1999, respectively, or when their respective successors have been duly elected
and qualified.
5
<PAGE> 6
NOMINEES FOR DIRECTOR
- ---------------------
<TABLE>
<CAPTION>
CLASS I
- -------
PRINCIPAL OCCUPATION CURRENT
OR EMPLOYMENT DURING DIRECTOR TERM
NAME AGE THE PAST FIVE YEARS SINCE EXPIRES
---- --- -------------------- -------- -------
<S> <C> <C> <C>
Joseph G. Caporella 37 Executive Vice President 1987 1997
and Corporate Secretary
of National Beverage Corp.
Samuel C. Hathorn, Jr. 54 President of Trendmaker 1997 1997
Development Co.,
a subsidiary of
Weyerhauser Co.
DIRECTORS WHOSE TERM OF OFFICE WILL CONTINUE AFTER THE ANNUAL MEETING
- ---------------------------------------------------------------------
CLASS II
- --------
PRINCIPAL OCCUPATION CURRENT
OR EMPLOYMENT DURING DIRECTOR TERM
NAME AGE THE PAST FIVE YEARS SINCE EXPIRES
---- --- -------------------- -------- --------
S. Lee Kling 68 Chairman of the Board 1993 1998
of Kling Rechter & Co.,
a merchant banking
company
Joseph P. Klock, Jr. 48 Chairman and Managing 1987 1998
Partner of Steel, Hector
& Davis, a law firm
located in Miami, Florida
CLASS III
- ---------
PRINCIPAL OCCUPATION CURRENT
OR EMPLOYMENT DURING DIRECTOR TERM
NAME AGE THE PAST FIVE YEARS SINCE EXPIRES
---- --- -------------------- -------- --------
Nick A. Caporella 61 Chairman of the Board, 1985 1999
Chief Executive Officer,
and President of National
Beverage Corp.
</TABLE>
6
<PAGE> 7
Additional information regarding the nominees for election as director and the
continuing directors of the Company follows:
NOMINEES
- --------
Joseph G. Caporella has served as Executive Vice President and
Corporate Secretary of the Company since January 1991. From January 1990 to
January 1991, he served as Executive Vice President of BevCo Sales, Inc., a
subsidiary of the Company. Mr. Joseph G. Caporella is the son of Mr. Nick A.
Caporella.
Samuel C. Hathorn was elected to the Board of Directors as a Class I
Director in June 1997 at a meeting of the Board of Directors. Mr. Hathorn
formerly served as a member of the Board of Directors from November 1, 1985 to
September 17, 1993. Mr. Hathorn has served as President of Trendmaker
Development Co. since 1981. Trendmaker Development Co. is a subsidiary of
Weyerhauser Co., an entity engaged in the business of real estate development
and headquartered in Houston, Texas.
CONTINUING DIRECTORS
- --------------------
Nick A. Caporella has served as Chairman of the Board, President,
Chief Executive Officer, and Chief Financial Officer of the Company since
the Company was founded in 1985. Mr. Caporella served as President and Chief
Executive Officer (since 1976) and Chairman of the Board (since 1989) of
Burnup & Sims Inc. ("Burnup") until March 11, 1994. Since January 1, 1992,
Mr. Caporella's services are provided to the Company through Corporate
Management Advisers, Inc. (the "Management Company"), a company which
he owns. See "CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS."
S. Lee Kling has served as Chairman of the Board of Kling Rechter &
Co., a merchant banking company, since December 1, 1991. Mr. Kling served as
Chairman of the Board of Landmark Bancshares Corp., a bank holding company
located in St. Louis, Missouri, from 1974 through December 1991, when the
Company merged with Magna Group, Inc. He served additionally as that company's
Chief Executive Officer from 1974 through October 1990. Mr. Kling also serves on
the Board of Directors of Bernard Chaus, Inc., Electro Rent Corp., Falcon
Products, Inc., Hanover Direct, Inc., Lewis Galoob Toys, Inc., Magna Group,
Inc., and Top Air Manufacturing, Inc.
Joseph P. Klock, Jr. is Chairman and Managing Partner of Steel, Hector
& Davis, a law firm located in Miami, Florida, and has been a partner of the
firm since 1977.
INFORMATION REGARDING MEETINGS AND COMMITTEES OF THE BOARD
- ----------------------------------------------------------
The Board of Directors held seven (7) meetings during the fiscal year
ended May 3, 1997 ("Fiscal 1997"). The Board of Directors has standing Audit,
Compensation and Stock Option, and Nominating Committees.
The members of the Company's Audit Committee are Messrs. Kling
(Chairman) and Klock. During Fiscal 1997, the Audit Committee held four (4)
meetings. The principal functions of the Audit Committee are to recommend to the
Board of Directors the engagement of the independent accountants of the Company
and review with the independent accountants and the Company's internal audit
department the scope and results of
7
<PAGE> 8
audits, the internal accounting controls of the Company, audit practices and the
professional services furnished by the independent accountants.
The members of the Company's Compensation and Stock Option Committee
are Messrs. Klock (Chairman), Kling and Joseph G. Caporella. During Fiscal 1997,
the Compensation and Stock Option Committee held three (3) meetings. The
principal functions of the Compensation and Stock Option Committee are to review
and approve all salary arrangements, including annual incentive awards, for
officers and key employees of the Company and to administer the Company's
employee benefit plans.
The members of the Company's Nominating Committee are Messrs. Nick A.
Caporella (Chairman) and Kling. During Fiscal 1997, the Nominating Committee
held two (2) meetings. The Nominating Committee recommends to the Board of
Directors candidates for election to the Board of Directors. The Nominating
Committee will consider any nomination made by any shareholder of the Company in
accordance with the procedures set forth in the Company's Certificate of
Incorporation.
Each director attended all of the meetings of the Board of Directors
and Committees on which he serves.
DIRECTOR COMPENSATION
- ---------------------
Officers of the Company who are also directors do not receive any fee
or remuneration for services as members of the Board of Directors or of any
Committee of the Board of Directors. In Fiscal 1997, non-management directors
received a retainer fee of $15,000 per annum, a fee of $600 for each board
meeting attended and a fee of $400 ($600 in the case of a committee chairman)
for each committee meeting attended.
On May 23, 1996, in recognition of services provided as outside members
of the Board of Directors of the Company, the Board of Directors authorized a
grant of 5,000 options to purchase common stock of the Company to each Messrs.
Klock and Kling at an exercise price of $4.25 per share. These options vest in
20% increments over a five (5) year period.
EXECUTIVE COMPENSATION AND OTHER INFORMATION
- --------------------------------------------
The following table shows, for the fiscal years ended May 3, 1997,
April 27, 1996 and April 29, 1995, the cash compensation paid by the Company to
the Chief Executive Officer and to the other executive officers of the Company:
8
<PAGE> 9
<TABLE>
<CAPTION>
ANNUAL COMPENSATION LONG-TERM COMP AWARDS
---------------------- -----------------------------
NAME & TITLE YEAR SALARY BONUS SECURITIES UNDERLYING OPTIONS
- ------------ ---- -------- -------- -----------------------------
<S> <C> <C> <C> <C>
Nick A. Caporella(1) 1997 None
Chairman, 1996 None
President & 1995 None
Chief Executive Officer
Joseph G. Caporella 1997 $145,000 $ 96,600 20,000
Executive Vice President 1996 135,000 80,794 13,000
& Corporate Secretary 1995 131,250 88,000 60,000
George R. Bracken(1)(2) 1997 $130,000 $ 31,250 7,000
Vice President & 1996 114,000 10,000 4,000
Treasurer 1995 104,500 10,000 0
Dean A. McCoy(3) 1997 $ 81,000 $ 12,500 3,000
Vice President - 1996 78,500 12,500 3,000
Controller 1995 77,400 17,500 28,000
</TABLE>
(1) The services of Messrs. Nick Caporella and Bracken are provided to the
Company through the Management Company, an entity owned by
Mr. Caporella. SEE "CERTAIN RELATIONSHIPS AND RELATED PARTY
TRANSACTIONS."
(2) Mr. Bracken has served as Vice President and Treasurer of the Company
since October 1996. Prior to that date, Mr. Bracken served as
Vice President and Treasurer of Burnup & Sims Inc. Since 1994,
Mr. Bracken's services have been provided to the Company by the
Management Company. Mr. Bracken's compensation was paid by the
Management Company.
(3) Mr. McCoy has served as Vice President - Controller of the Company
since July 1993 and Controller since joining the Company in December
1991. Prior to joining the Company, Mr. McCoy served as Controller of
Steego Corporation.
OPTION GRANTS IN LAST FISCAL YEAR
<TABLE>
<CAPTION>
POTENTIAL REALIZABLE VALUE AT
ASSUMED ANNUAL RATES OF STOCK
INDIVIDUAL GRANTS PRICE APPRECIATION FOR OPTION
------------------------------------------------- TERM
TERM NO. OF SECURITIES % OF TOTAL OPTIONS GRANTED EXERCISE EXPIRATION ------------------------------
NAME UNDERLYING OPTIONS TO EMPLOYEES IN FISCAL YEAR PRICE DATE 5% 10%
- ---- ------------------ --------------------------- -------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Joseph G.
Caporella 20,000 11.0% $5.00 5/16/06 $62,800 $159,400
George R. Bracken 7,000 3.6% 5.00 5/16/06 21,980 55,790
Dean A. McCoy 3,000 1.5% 5.00 5/16/06 9,420 23,910
</TABLE>
AGGREGATED OPTION EXERCISES IN FISCAL 1997 AND FISCAL 1997 YEAR-END OPTION
VALUES
No named executive officer exercised stock options during the fiscal
year ended May 3, 1997. The following table sets forth information with respect
to the named executive officers concerning unexercised options held as of May 3,
1997:
<TABLE>
<CAPTION>
NO. OF SECURITIES UNDERLYING UNEXERCISED OPTIONS VALUE OF UNEXERCISED IN-THE-MONEY OPTIONS (1)
------------------------------------------------ ---------------------------------------------
NAME EXERCISABLE UNEXERCISABLE EXERCISABLE UNEXERCISABLE
- ---- ------------------ ------------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Joseph G.
Caporella 62,600 50,400 $563,428 $384,912
George R. Bracken 2,200 8,800 14,746 58,984
Dean A. McCoy 18,000 16,000 153,846 130,424
</TABLE>
- ------------------
(1) Amount reflects potential gains on outstanding options based on the
closing price of the Common Stock on May 2, 1997.
The Company does not maintain any reportable long-term incentive plans.
9
<PAGE> 10
COMPENSATION COMMITTEE REPORT
- -----------------------------
The Compensation and Stock Option Committee of the Board of Directors
has furnished the following report:
Mr. Nick A. Caporella was not compensated by the Company or its
subsidiaries during the past fiscal year. Corporate Management Advisors, Inc., a
Delaware corporation, of which all of the outstanding shares of capital stock
are owned by Nick A. Caporella, provides management services to the Company and
its subsidiaries through a group of employees, including Nick A. Caporella, and
receives a management fee from the Company pursuant to the terms of a management
agreement adopted in fiscal 1992 prior to the Company having publicly traded
shares. See "CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS". The
Management Company receives an annual base fee from the Company equal to one
percent of the consolidated net sales of the Company, plus incentive
compensation based upon certain factors to be determined by the Compensation and
Stock Option Committee of the Board of Directors. The Company has accrued
$3,854,000 for services rendered by the Management Company for the Fiscal 1997.
No incentive compensation has been incurred or approved under the management
agreement since its inception. In addition, no options or other stock-based
awards have been granted to Mr. Caporella since 1985.
The Company's compensation structure has been designed to enable the
Company to attract, motivate and retain top quality executives by providing a
fully competitive and comprehensive package which reflects individual
performance as well as annual incentive awards. The awards are payable in cash
and are based on the achievement of performance goals established by the
Committee, in consultation with the Chief Executive Officer. Consideration is
also given to comparable compensation data for persons holding similarly
responsible positions at other companies in determining appropriate compensation
levels. In addition, long-term, stock-based awards are granted to strengthen the
mutuality of interest between the executive and the Company's shareholders and
to motivate and reward the achievement of important long-term performance
objectives of the Company.
Long-term incentive compensation for executives currently consists of
stock-based awards made under the Company's 1991 Omnibus Incentive Plan, of
which there are outstanding stock options with vesting schedules typically of
five years. The Company issues stock awards with long-term vesting schedules to
increase the level of the executive's stock ownership by continued employment
with the Company.
In addition, long-term incentive compensation is awarded under the
National Beverage Corp. Key Employee Equity Partnership Program (the "KEEP
Program"). The KEEP Program is designed to positively align the interests
between the Company's executives and its shareholders beyond traditional option
programs while, at the same time, intending to stimulate and reward management
in "partnering-up" with the Company in its quest to create shareholder value.
The KEEP Program provides for the granting of stock options to key employees,
officers and directors of the Company who invest their personal funds in the
Company's common stock. Participants who purchase shares of the Company's
common stock in the open market receive grants of stock options equal to 50% of
the number of shares purchased, up to a maximum of 6,000 shares in any two-year
period. Options under the KEEP Program are automatically forfeited in the event
of the sale of shares originally acquired by the participant. The options are
granted at an initial exercise price of
10
<PAGE> 11
60% of the purchase price paid for the shares acquired and reduce to the par
value of the Company's stock at the end of the six-year vesting period.
The Company's long-term incentive programs are intended to provide
rewards to executives only if value is created for shareholders over time and
the executive continues in the employ of the Company. The Committee believes
that employees should have sufficient holdings of the Company's Common Stock so
that their decisions will appropriately foster growth in the value of the
Company. The Committee reviews with the Chief Executive Officer the recommended
individual awards for those executives, other than the Chief Executive Officer,
and evaluates the scope of responsibility, strategic and operational goals of
individual contributions in making final awards under the Omnibus Incentive Plan
and determining participants in the KEEP Program.
Compensation and Stock Option Committee:
Mr. Joseph P. Klock, Jr.
Mr. S. Lee Kling
Mr. Joseph G. Caporella
PERFORMANCE GRAPH
- -----------------
The following graph compares the cumulative total shareholder return
on the Company's Common Stock for the period from May 2, 1992 through May 3,
1997 with the cumulative total return of the S&P 500 Stock Index and a Company
constructed index of peer companies. Included in the Company constructed peer
group index are Coca-Cola Enterprises, Inc., Coca Cola Bottling Company
Consolidated and Cott Corporation. The graph assumes that the value of the
investment in Common Stock was $100 on May 2, 1992 and that all dividends, if
any, were reinvested.
COMPARISON OF TOTAL RETURN SINCE MAY 2, 1992 OF NATIONAL
BEVERAGE COMMON STOCK, S&P 500, AND PEER GROUP COMPANIES
[GRAPH]
<TABLE>
<CAPTION>
5/2/92 5/1/93 4/30/94 4/29/95 4/27/96 5/3/97
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
National Beverage $100.00 $ 89.87 $ 96.19 $139.21 $189.83 $405.02
S&P 500 100.00 109.24 115.05 135.14 175.97 219.99
Peer Group 100.00 120.20 166.94 164.69 203.76 385.41
</TABLE>
The following graph compares the cumulative total shareholder return
on the Company's Common Stock for the period from May 2, 1992 through May 3,
1997 with the cumulative total return of the S&P 500 Stock Index and a Company
constructed index of peer companies. Included in the Company constructed peer
group index are Clearly Canadian Beverage Corporation, Coca-Cola Bottling
Company Consolidated and Coca-Cola Enterprises, Inc. This chart is provided with
the comparative indexes used by the Company in last year's proxy statement;
these indexes will not be shown in future years because the peer group used
above better represents the Company's current business mix.
COMPARISON OF TOTAL RETURN SINCE MAY 2, 1992 OF
NATIONAL BEVERAGE COMMON STOCK, S&P 500 AND PEER
GROUP COMPANIES
[GRAPH]
<TABLE>
<CAPTION>
5/2/92 5/1/93 4/30/94 4/29/95 4/27/96 5/3/97
------- ------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
National Beverage $100.00 $ 89.87 $ 96.19 $139.21 $189.83 $405.02
S&P 500 100.00 109.24 115.05 135.14 175.97 219.99
Peer Group 100.00 91.35 120.74 150.91 195.71 385.37
</TABLE>
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
- ----------------------------------------------------
The Company is a party to a management agreement with Corporate
Management Advisers, Inc., a corporation owned by Nick A. Caporella, pursuant to
which, effective January 1, 1992, the Management Company has provided corporate
finance, strategic planning, business development and other management services
to the Company and its subsidiaries.
The management agreement states that the Management Company is to
provide to the Company, subject to the direction and supervision of the Board of
Directors of the Company (i) senior corporate functions (including supervision
of the Company's financial, legal, executive recruitment, internal audit and
management information systems departments) as well as the services of a Chief
Executive Officer and (ii) services in connection with acquisitions,
dispositions and financings by the Company, including identifying and profiling
acquisition candidates, negotiating and structuring potential transactions and
arranging financing for any such transaction.
11
<PAGE> 12
The Management Company receives an annual base fee from the Company
equal to one percent of the consolidated net sales of the Company, plus
incentive compensation based upon certain factors to be determined by the
Compensation and Stock Option Committee of the Board of Directors. The Company
has accrued and paid $3,854,000, $3,504,000 and $3,487,000 for services rendered
by the Management Company for fiscal years ended 1997, 1996 and 1995,
respectively. No incentive compensation has been incurred or approved under the
management agreement since its inception. See "COMPENSATION COMMITTEE REPORT".
Effective May 1, 1992, NewBevCo., Inc., a wholly-owned subsidiary of the
Company, assumed the obligations of the Company to pay any fees owed to the
Management Company to the extent the Management Company provides services to
NewBevCo., Inc. and its subsidiaries. Pursuant to its terms, the management
agreement currently expires on December 31, 1997.
RELATIONSHIP WITH INDEPENDENT PUBLIC ACCOUNTANTS
- ------------------------------------------------
The Company's financial statements for the fiscal years ended May 3,
1997, April 27, 1996 and April 29, 1995 have been examined by Coopers & Lybrand
L.L.P, independent certified public accountants. Representatives of Coopers &
Lybrand L.L.P. are expected to be present at the Meeting to make a statement if
they so desire and to be available to respond to appropriate questions.
Subsequent to the Meeting, the Company's Board of Directors intends to
review the appointment of independent certified public accountants for the next
fiscal year.
PROXY SOLICITATION
- ------------------
The accompanying proxy is solicited by and on behalf of the Board of
Directors of the Company. Proxies may be solicited by personal interview, mail,
telephone or telegraph. The Company will also request banks, brokers and other
custodian nominees and fiduciaries to supply proxy material to the beneficial
owners of the Company's Common Stock of whom they have knowledge, and the
Company will reimburse them for their expense in so doing. Certain directors,
officers and other employees of the Company may solicit proxies without
additional remuneration. The entire cost of the solicitation will be borne by
the Company.
METHOD OF COUNTING VOTES
- ------------------------
Pursuant to rules promulgated by the Commission, boxes and a designated
blank space are provided on the proxy card for shareholders to mark if they wish
to vote "for" or "withhold authority" (or abstain) to vote for the director
nominee. Under applicable securities laws, Delaware law and the Company's
Restated Certificate of Incorporation and By-laws, an abstention or withholding
of authority to vote will have no effect on the outcome of the election of
directors, as such election is determined by the number of votes cast. With
regard to the election of directors, however, shares represented at the Meeting
by proxies containing instructions to abstain, or withholding authority to vote,
will nonetheless be counted as present for purposes of determining whether a
quorum exists at the Meeting.
A broker non-vote occurs when a broker holding shares registered in a
street name is permitted to vote, at the broker's discretion, on routine matters
without receiving instructions from the client, but is not permitted to vote
without instructions on non-routine matters, and the broker returns a proxy card
with no vote (the "non-vote") on the non-routine matter. Under Delaware law and
the Company's Restated Certificate of Incorporation and By-laws, broker
non-votes will have no impact on any of the matters submitted to the
shareholders, but
12
<PAGE> 13
shares represented by a proxy card marked with a non-vote would be counted as
present for purposes of determining the existence of a quorum.
DISCRETIONARY VOTING OF PROXIES ON OTHER MATTERS
- ------------------------------------------------
The Board of Directors does not now intend to bring before the Meeting
any matters other than those disclosed in the Notice of Annual Meeting, and it
does not know of any business which persons other than the Board of Directors
intend to present at the Meeting. Should any other matter requiring a vote of
the shareholders arise, the proxies in the enclosed form confer upon the person
or persons entitled to vote the shares represented by any such proxy
discretionary authority to vote the same in respect of any such other matter in
accordance with their best judgment.
Please date, sign and return the proxy at your earliest convenience in
the enclosed envelope addressed to the Company; no postage is required for
mailing in the United States. A prompt return of your proxy will be appreciated
as it will save the expense of further mailings.
By Order of the Board of Directors,
Nick A. Caporella
Chairman of the Board of Directors,
Chief Executive Officer and President
September 23, 1997
Fort Lauderdale, Florida
13
<PAGE> 14
APPENDIX A
NATIONAL BEVERAGE CORP.
PROXY FOR ANNUAL MEETING OF STOCKHOLDERS - OCTOBER 17, 1997
SOLICITED BY THE BOARD OF DIRECTORS OF THE COMPANY
The undersigned hereby constitutes and appoints Dean A. McCoy and David J.
Boden, and each of them, with full power of substitution, attorneys and proxies
to represent and to vote all of the shares of Common Stock which the undersigned
would be entitled to vote, with all powers the undersigned would possess if
personally present, at the Annual Meeting of the Stockholders of NATIONAL
BEVERAGE CORP., to be held at the Sheraton Long Beach, 333 East Ocean Boulevard,
Long Beach, California 90802, on October 17, 1997 at 2:00 PM local time, and at
any adjournments or postponements thereof, on all matters coming before said
meeting:
1. Election of Class I Directors: Nominees Joseph G. Caporella
Samuel C. Hathorn, Jr.
(Mark only one of the following boxes)
[ ] VOTE FOR all nominees listed [ ] VOTE WITHHELD for all
above except for the nominee nominees
listed (if any):____________
2. In their discretion, upon any other business which may properly come
before the meeting or any adjournments or postponements thereof.
This proxy when properly executed will be voted in the manner directed herein
by the undersigned stockholder. If no direction is made, this proxy will be
voted FOR the election as Class I Directors of the nominees of the Board of
Directors.
The undersigned acknowledges receipt of the accompanying Proxy Statement dated
September __, 1997.
(When signing as attorney, trustee, executor, administrator, guardian,
corporate officer, or other representative, please give full title. If more
than one trustee, all should sign. Joint owners must each sign.)
[ ] Date: , 1997
-------------------
------------------------------
[ ]
------------------------------
Signature of Stockholder(s)
Please date and sign exactly as name appears above.
