SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
October 3, 1997
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CRUISE AMERICA, INC.
State of Florida
Commission File No. 1-9471 I.R.S. No. 59-1403609
11 West Hampton Avenue
Mesa, Arizona 85210-5258
Telephone: (602) 464-7300
Page 1 of 5 Pages
Exhibit Index at Page 2
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Item 5. Other Events
Reference is made to the Company's press releases dated
October 3 and October 8, 1997, copies of which are attached
hereto as Exhibits 99.1 and 99.2, respectively.
Item 7. Financial Statements and Exhibits
(c) Exhibits Page No.
99.1 Press Release of the Company dated October 3, 1997.........4
99.2 Press Release of the Company dated October 8, 1997.........5
2
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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.
CRUISE AMERICA, INC.
October 13, 1997 /s/ Randall Smalley
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Randall Smalley
President
Chief Executive Officer
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For Immediate Release
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CRUISE AMERICA REPORTS ADVERSE JURY DECISION
MESA, Arizona (October 3, 1997) -- Cruise America, Inc. (AMEX: "RVR") today
announced that a California jury awarded damages of approximately $2.2 million
against the Company's subsidiary, American Land Cruisers of California,
Incorporated (ALCCAL).
The action was first brought against ALCCAL in May 1987 and has been tried twice
previously. The first trial resulted in a judgement for the plaintiff in the
amount of $3.5 million. That judgement was reversed on appeal and remanded for
retrial. The second trial resulted in a net judgement for the Company of
$399,000. That judgement was reduced on appeal and again remanded for retrial.
The issue of punitive damages in the third trial is still before the jury. The
management of Cruise America, Inc. believes the most recent jury verdict is
unjust and that the damages awarded are inappropriate and excessive. The Company
intends to vigorously pursue a reversal of these decisions or the reduction or
elimination of the damages awarded through post-trial motions and through the
California Court of Appeals. Pending appeal, the Company intends to set up a
reserve for damages in its second fiscal quarter, which ends October 31, 1997.
The damages award will not have any adverse effects upon the Company's daily
operations, which will continue as normal.
Cruise America, Inc. believes that it is one of the largest companies in North
America specializing in the rental and sale of recreational vehicles, including
motorhomes, truck campers and motorcycles. The Company's common stock trades on
the American Stock Exchange under the ticker symbol "RVR".
For additional information, please contact:
Randall Smalley, President and CEO at (602) 464-7300
or
R. Jerry Falkner, CFA, Investor Relations at (800) 377-9893.
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11 WEST HAMPTON AVENUE / MESA, ARIZONA 85210
PHONE: (602) 464-7300 FAX: (602) 464-7302
4
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For Immediate Release
CRUISE AMERICA REPORTS ADDITIONAL DAMAGES IN
CALIFORNIA LAWSUIT
MESA, Arizona (October 8, 1997) -- Cruise America, Inc. (AMEX: "RVR") today
announced that a California jury has awarded punitive damages of approximately
$2.6 million in a lawsuit against the Company and one of its subsidiaries,
American Land Cruisers of California, Incorporated (ALCCAL), bringing the total
amount awarded in the lawsuit, including pre-judgement interest, to
approximately $7 million. The plaintiff's motion for attorney's fees is still
pending. This one-time event will not have an adverse effect on Cruise America's
daily operations, which will continue as normal.
The management of Cruise America believes the jury verdict is unjust and that
the damages awarded are inappropriate and excessive. The Company intends to
vigorously pursue a reversal of the jury decisions or the elimination of the
damages awarded through post-trial motions and through the California Court of
Appeal. The action arose out of a claim for an alleged wrongful termination by
the Company of a sublease agreement. The lawsuit has been pending since May 1987
and has been tried twice previously. The first trial resulted in a judgement for
the plaintiff of approximately $3.5 million that was reversed on appeal and
remanded for retrial. The second trial resulted in a net judgement for the
Company of $399,000, which was reduced on appeal and again remanded for retrial.
Pending appeal, the Company intends to take a one-time charge to establish a
reserve for damages in its second fiscal quarter, which ends October 31, 1997.
Cruise America, Inc. believes that it is one of the largest companies in North
America specializing in the rental and sale of recreational vehicles, including
motorhomes, truck campers and motorcycles. The Company's common stock trades on
the American Stock Exchange under the ticker symbol "RVR."
Company contact: Randall Smalley, CEO (602) 464-7300
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11 WEST HAMPTON AVENUE / MESA, ARIZONA 85210
PHONE: (602) 464-7300 FAX: (602) 464-7302
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