SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
Securities Act of 1934
Date of Report December 1, 1995
TCBY Enterprises, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-10046 71-0552115
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
incorporation) Number)
425 West Capitol Avenue Little Rock, AR 72201
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number (501) 688-8229
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(Former name or former address if changed since last report)
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ITEM 5. OTHER EVENT
PRESS RELEASE
FOR IMMEDIATE RELEASE
FRIDAY
DECEMBER 1, 1995
CONTACT PERSON: STACY DUCKETT
Vice President, Corporate Communications
(501) 688-8229
TCBY ANNOUNCES STOCK REPURCHASE, FRANCHISING OF
COMPANY-OWNED STORES AND OTHER DEVELOPMENTS
Little Rock, AR-December 1, 1995-TCBY ENTERPRISES, INC. (NYSE:TBY)
announced that its engagement of Stephens Inc. in June of this year to
explore various strategic alternatives with the intent to maximize
shareholder value has resulted in a determination by the Board of Directors
of the Company to authorize the repurchase from time to time of up to three
million shares of its outstanding common stock, franchise Company-owned
"TCBY" stores, sell the Carlin Manufacturing company, restructure its
organization, and consider alternative methods for the distribution of its
retail hard-pack products.
Since announcing the retention of Stephens, the Company's Board of
Directors and management have explored various strategic alternatives. As
a result of this process, the Board of Directors authorized the repurchase
of up to three million shares of its common stock in the open market or in
negotiated private transactions.
The Company's plan includes the sale and franchising of most of its 85
Company-owned "TCBY" stores and the sale of Carlin Manufacturing located in
Fresno, California. Due to efficiencies available primarily as a result of
the franchising of Company-owned stores, the Company will implement an
internal restructuring of its organization. This will result in a pre-tax
restructuring charge of approximately $1.4 million. As a result of these
actions, the Company has concluded the process initiated in June, 1995 of
exploring strategic alternatives. No assurance can be given that any of
the sales or other initiatives currently planned will be accomplished upon
terms favorable to the Company.
The Company will seek to continue the development of its new "TCBY" Treats
stores. Currently over 40% of the domestic franchise stores have
implemented this new concept. In addition, the Company will also emphasize
the development of nontraditional locations with a focus on national
petroleum convenience stores. The Company currently has over 1,250
nontraditional locations open. Many of these locations share space with
other national food companies such as McDonald's, Taco Bell, Pizza Hut,
Burger King, Blimpie, and Subway.
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During the fourth quarter, the Company will adopt several new accounting
standards recently issued by the Financial Accounting Standards Board. The
Company is finalizing the complex calculations associated with these new
standards, but estimates that the adoption of these standards will result
in pre-tax charges of approximately $26 million, or $0.67 per share after
taxes, in fiscal 1995. Management of the Company expects a net loss for
fiscal 1995.
"As a result of the process with Stephens Inc., the Company has redefined
its market position and growth strategy," said Herren C. Hickingbotham,
President and Chief Operating Officer. "We will continue the expansion of
the "TCBY" Treats program and pursuit of growth opportunities in the
nontraditional segment. The Company expects to add international
locations, with agreements for 32 countries. As of today we have over
approximately 2,700 locations and we are the world's largest
manufacturer-franchisor of frozen yogurt."
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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.
TCBY Enterprises, Inc.
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(Registrant)
December 1, 1995 /s/ Gene Whisenhunt
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(Date) (Signature)
Gene Whisenhunt
Senior Vice President
Chief Accounting Officer
