UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
_X_ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 31, 1997
______________________________
OR
___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to
_____________
Commission file number 1-10046
_______
TCBY ENTERPRISES, INC.
___________________________________________________________
(Exact name or registrant as specified in its charter)
Delaware 71-0552115
___________________________________________________________
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
425 West Capitol Avenue Little Rock, Arkansas 72201
____________________________________________________________
(Address of principal executive offices) (Zip Code)
(501)688-8229
___________________________________________________________
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 of the
Securities Exchange Act of 1934 during the preceding 12
months, (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to
such filing requirements for the past 90 days.
Yes _X_ No ___
On September 30, 1997 there were 23,797,101 shares of the
registrant's common stock outstanding.
Sequential Page No. 1
<TABLE>
TABLE OF CONTENTS
<CAPTION>
PART I. FINANCIAL INFORMATION
Page
____
<S> <C> <C>
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets
August 31, 1997 and November 30, 1996 3
Consolidated Statements of Operations
Quarter ended and nine months ended
August 31, 1997 and 1996 5
Consolidated Statements of Cash Flows
Nine months ended August 31, 1997 and 1996 6
Notes to Consolidated Financial Statements
August 31, 1997 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 15
Item 6. Exhibits and Reports on Form 8-K 15
SIGNATURES 16
</TABLE>
Sequential Page No. 2
PART 1
FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS (UNAUDITED)
TCBY ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
August 31, November 30,
1997 1996
_________________________________
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 15,716,842 $ 14,919,008
Short-term investments 4,172,553 4,252,552
Receivables:
Trade accounts 14,365,968 8,620,498
Notes 2,459,622 2,429,967
Allowance for doubtful accounts
and impaired notes (1,112,957) (1,187,628)
_____________ _____________
15,712,633 9,862,837
Refundable income taxes - 332,873
Deferred income taxes 1,202,576 1,451,190
Inventories 10,655,938 11,321,751
Prepaid expenses and other assets 1,459,188 1,742,801
Assets held for sale 754,652 822,583
_____________ _____________
TOTAL CURRENT ASSETS 49,674,382 44,705,595
PROPERTY, PLANT, AND EQUIPMENT:
Land 2,866,820 2,866,820
Buildings 23,666,776 23,581,923
Furniture, vehicles, and equipment 49,862,138 49,073,757
Leasehold improvements 3,630,035 3,511,509
Construction in progress 21,576 -
Allowances for depreciation (38,883,469) (35,694,982)
_____________ _____________
41,163,876 43,339,027
OTHER ASSETS:
Notes receivable, less current portion
(less allowance for doubtful and impaired
notes of $7,859,536 in 1997 and
$8,494,396 in 1996) 5,624,381 6,131,070
Intangibles (less amortization of
$1,898,247 in 1997 and $1,731,199
in 1996) 4,474,929 4,485,689
Other 4,151,684 3,807,066
____________ _____________
14,250,994 14,423,825
_____________ _____________
TOTAL ASSETS $105,089,252 $102,468,447
============= =============
</TABLE>
See notes to consolidated financial statements.
Sequential Page No. 3
TCBY ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
August 31, November 30,
1997 1996
________________________________
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable $ 3,980,827 $ 1,906,568
Accrued expenses 6,121,092 5,699,381
Income taxes payable 1,505,808 -
Current portion of long-term debt 3,171,448 3,171,448
_____________ _____________
TOTAL CURRENT LIABILITIES 14,779,175 10,777,397
LONG-TERM DEBT, less current portion 7,090,870 9,469,456
DEFERRED INCOME TAXES 3,715,427 3,001,101
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, par value $.10 per share;
authorized 2,000,000 shares - -
Common stock, par value $.10 per share;
authorized 50,000,000 shares;
issued 27,084,570 in 1997 and
27,062,345 shares in 1996 2,708,457 2,706,235
Additional paid-in capital 25,663,165 25,547,184
Retained earnings 69,232,146 65,165,190
_____________ _____________
97,603,768 93,418,609
Less treasury stock, at cost (3,187,469
shares in 1997 and 2,424,769 in 1996) (18,099,988) (14,198,116)
_____________ _____________
TOTAL STOCKHOLDERS' EQUITY 79,503,780 79,220,493
_____________ ______________
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $105,089,252 $102,468,447
============= =============
</TABLE>
See notes to consolidated financial statements.
Sequential Page No. 4
TCBY ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
August 31, August 31, August 31, August 31,
1997 1996 1997 1996
________________________________________________________________
<S> <C> <C> <C> <C>
Sales $30,018,752 $26,075,002 $ 72,706,284 $ 65,706,599
Cost of sales 19,782,608 16,727,654 48,495,096 41,925,391
____________ ____________ _____________ _____________
GROSS PROFIT 10,236,144 9,347,348 24,211,188 23,781,208
Franchising revenues:
Initial franchise and
license fees 693,625 590,750 2,911,711 1,740,375
Royalty income 3,425,530 3,555,427 8,175,636 7,996,898
____________ ____________ _____________ _____________
4,119,155 4,146,177 11,087,347 9,737,273
____________ ____________ _____________ _____________
14,355,299 13,493,525 35,298,535 33,518,481
Selling, general, and
administrative
expenses 7,863,239 7,809,733 23,848,287 24,963,838
____________ ____________ _____________ _____________
INCOME FROM
OPERATIONS 6,492,060 5,683,792 11,450,248 8,554,643
Other income (expense):
Interest expense (189,762) (237,901) (582,663) (740,685)
Interest income 284,055 299,085 830,760 820,876
Other income 67,721 32,544 150,561 140,444
____________ ____________ _____________ _____________
162,014 93,728 398,658 220,635
____________ ____________ _____________ _____________
INCOME BEFORE
INCOME TAXES 6,654,074 5,777,520 11,848,906 8,775,278
Income tax expense 2,328,928 2,022,133 4,147,119 3,071,347
____________ ____________ _____________ _____________
NET INCOME $ 4,325,146 $ 3,755,387 $ 7,701,787 $ 5,703,931
============ ============ ============= =============
Net income
per share $ 0.18 $ 0.15 $ 0.32 $ 0.23
============ ============ ============= =============
Average shares
outstanding 23,880,545 25,036,405 24,168,000 25,293,284
============ ============ ============= =============
Cash dividends paid
per share $ 0.05 $ 0.05 $ 0.15 $ 0.15
============ ============ ============= =============
</TABLE>
See notes to consolidated financial statements.
Sequential Page No. 5
TCBY ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
August 31, August 31,
1997 1996
________________________________
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 7,701,787 $ 5,703,931
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 3,798,016 3,880,564
Amortization of intangibles 167,048 155,213
Provision for doubtful accounts and
impaired notes 47,097 66,155
Deferred income taxes 962,939 1,051,169
Gain on sales of property and equipment (40,710) (40,631)
Changes in operating assets and liabilities:
Receivables (6,260,345) (2,171,382)
Inventories 683,651 1,068,865
Prepaid expenses 283,613 352,700
Assets held for disposal - 2,298,521
Intangibles and other assets (705,002) (1,564,935)
Accounts payable and accrued expenses 2,495,970 (2,845,138)
Income taxes 1,838,681 5,629,538
_____________ _____________
NET CASH PROVIDED BY
OPERATING ACTIVITIES 10,972,745 13,584,570
INVESTING ACTIVITIES
Purchases of property, plant, and equipment (1,539,386) (2,331,386)<PAGE>
Proceeds from sales of property and equipment 57,624 318,508
Origination of notes receivable (767,194) (223,284)
Principal collected on notes receivable 1,791,132 1,306,315
Purchases of short-term investments (720,001) (231)
Proceeds from maturity of short-term
investments 800,000 4,652,085
_____________ _____________
NET CASH (USED IN) PROVIDED BY
INVESTING ACTIVITIES (377,825) 3,722,007
FINANCING ACTIVITIES
Proceeds from sale of common stock 118,203 -
Dividends paid (3,634,831) (3,805,986)
Purchases of treasury stock (3,901,872) (3,694,119)
Principal payments of long-term debt (2,378,586) (2,378,586)
_____________ _____________
NET CASH USED IN FINANCING ACTIVITIES (9,797,086) (9,878,691)
_____________ _____________
INCREASE IN CASH AND CASH EQUIVALENTS 797,834 7,427,886
Cash and cash equivalents at beginning
of period 14,919,008 5,565,654
_____________ _____________
CASH AND CASH EQUIVALENTS AT END
OF PERIOD $ 15,716,842 $ 12,993,540
============= =============
</TABLE>
See notes to consolidated financial statements.
Sequential Page No. 6
TCBY ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
August 31, 1997
NOTE A -- FINANCIAL STATEMENT PRESENTATION
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the
quarter and nine months ended August 31, 1997 are not
necessarily indicative of the results that may be expected
for the year ended November 30, 1997. For further
information, refer to the consolidated financial statements
and footnotes thereto included in the Company's annual
report on Form 10-K for the year ended November 30, 1996.
In the first quarter of 1997, the Company changed to a
fiscal year consisting of 52 or 53 weeks, ending on the
Sunday nearest November 30.
NOTE B -- RECLASSIFICATIONS AND RESTATEMENT
Certain amounts in the 1996 consolidated financial
statements have been reclassified to conform to the 1997
presentation.
NOTE C -- INVENTORIES
<TABLE>
<CAPTION>
August 31, November 30,
1997 1996
____________ ____________
<S> <C> <C>
Manufacturing materials and
supplies $ 4,110,134 $ 3,794,175
Finished food products 2,993,913 2,947,515
Equipment and other products 3,551,891 4,580,061
____________ ____________
$10,655,938 $11,321,751
============ ============
</TABLE>
Sequential Page No. 7
NOTE D -- ACCRUED EXPENSES
Accrued expenses consist of the following:
<TABLE>
<CAPTION>
August 31, November 30,
1997 1996
____________ ____________
<S> <C> <C>
Rent $ 664,052 $ 960,371
Compensation 3,139,230 2,219,160
Other 2,317,810 2,519,850
____________ ____________
$ 6,121,092 $ 5,699,381
============ ============
</TABLE>
NOTE E -- CONTINGENCIES
A purported investor in a former franchisee claimed
approximately $26 million in trebled damages plus costs and
prejudgment interest from the former franchisee for alleged
fraudulent acts. The compensatory damages requested were
$8.7 million. The Company was also named in this suit as a
defendant. In April, 1997, summary judgment was granted by
the trial court in favor of the Company on the basis that as
a matter of law the Company could not be liable to the
purported investor; the plaintiff has appealed the summary
judgment order, and in response the Company will vigorously
argue that the order should be upheld.
Other than as set forth above, there is no material
litigation pending against the Company. Various legal and
administrative proceedings are pending against the Company
which are incidental to the business of the Company. The
ultimate legal and financial liability of the Company in
connection with such proceedings and that discussed above
cannot be estimated with certainty, but the Company
believes, based upon its examination of these matters, its
experience to date, and its discussions with legal counsel,
that resolution of these proceedings will have no material
adverse effect upon the Company's financial condition,
either individually or in the aggregate; of course, any
substantial loss pursuant to any litigation might have a
material adverse impact upon results of operations in the
quarter or year in which it were to be incurred, but the
Company cannot estimate the range of any reasonably possible
loss.
NOTE F -- IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARD
In February 1997, the Financial Accounting Standards Board
issued Statement No. 128, Earnings Per Share, which is
required to be adopted by the Company in the first quarter
of 1998. At that time, the Company will be required to
change the method currently used to compute earnings per
share and to restate all prior periods. Under the new
requirements, primary earnings per share will be renamed
basic earnings per share and will exclude the dilutive
effect of stock options. The Company has determined the
impact of Statement No. 128 on the calculation of earnings
per share for the third quarter and nine months ended August
31, 1997 and 1996 would not be material.
Sequential Page No. 8
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Company's total sales for the third quarter and first
nine months of 1997 increased 15 percent and 11 percent,
respectively, over the same periods in 1996. As described
below, the Company has experienced improved sales in the
specialty products and equipment distribution categories.
These increases are partially offset by decreased sales by
Company-owned stores due to the franchising of these stores
during 1996; the divestiture of Carlin in July, 1997; and
decreased sales to traditional "TCBY"(Registered) stores.
The Company's total sales excluding "TCBY"(Registered)
Company-owned units and Carlin Manufacturing for the quarter
and for the nine months increased 19 percent and 17 percent,
respectively, in 1997 compared to 1996. The following table
sets forth sales by category within the Company's primary
segments (food products and equipment) of operation:
<TABLE>
<CAPTION>
(dollars in thousands)
Quarter Ended Nine Months Ended
August 31, 1997 August 31, 1996 August 31, 1997 August 31, 1996
_______________ _______________ _______________ _______________
Sales % Sales % Sales % Sales %
_______ ____ _______ ____ _______ ____ _______ ____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Food Products:
"TCBY"(Registered)
Frozen Product sales
for distribution to
"TCBY"(Registered)
locations $15,415 51% $16,899 65% $38,841 53% $39,704 60%
Sales of specialty
products 9,786 33% 4,523 17% 20,155 28% 11,167 17%
Retail sales by
Company-owned
stores 206 1% 217 1% 578 1% 2,426 4%
_______ ____ _______ ____ _______ ____ _______ ____
25,407 85% 21,639 83% 59,574 82% 53,297 81%
Equipment:
Sales by the
Company's equip-
ment distributor 4,345 14% 3,341 13% 11,094 15% 9,325 14%
Sales of manufac-
tured specialty
vehicles 1 0% 833 3% 1,228 2% 2,307 4%
_______ ____ _______ ____ _______ ____ _______ ____
4,346 14% 4,174 16% 12,322 17% 11,632 18%
Other 266 1% 262 1% 810 1% 778 1%
_______ ____ _______ ____ _______ ____ _______ ____
Total Sales $30,019 100% $26,075 100% $72,706 100% $65,707 100%
======= ==== ======= ==== ======= ==== ======= ====
</TABLE>
Sequential Page No. 9
Sales from the Company's food products segment include (i)
wholesale sales of frozen yogurt and ice cream products to
ProSource Distribution Services and to other foodservice
distributors, which distribute products to
"TCBY"(Registered) stores and non-traditional locations, and
sales to international master franchisees of frozen yogurt
and ice cream products and proprietary ingredients for the
manufacture of frozen yogurt products in the countries that
produce locally, (ii) sales of "TCBY"(Registered) frozen
packaged products and other specialty dairy food products to
customers including supermarkets, convenience stores,
dairies, food service distributors, club stores, and private
label suppliers, and (iii) retail sales of yogurt, juices,
and related food items by Company-owned stores.
Wholesale sales of frozen yogurt and ice cream products
decreased nine percent and two percent during the third
quarter and first nine months of 1997, respectively,
compared to the same periods in 1996. These decreases are
attributed primarily to a reduction in the number of
domestic traditional "TCBY"(Registered) stores in operation
and a decline in yogurt purchased by operating stores during
1997 compared to 1996. These decreases were partially
offset by increased purchases by "TCBY"(Registered)
non-traditional locations. The Company continues to develop
additional "TCBY"(Registered) non-traditional locations with
over 300 "TCBY"(Registered) locations under agreement for
development at August 31, 1997. Most of the
"TCBY"(Registered) locations under development will be
co-branded locations with petroleum or other food
operations.
The following table sets forth TCBY(Registered) and Juice
Works(Registered) location activity for the third quarter
and first nine months of 1997 and 1996.
<TABLE>
<CAPTION>
NON-
FRANCHISED COMPANY INTERNATIONAL TRADITIONAL TOTAL
STORES STORES LOCATIONS LOCATIONS LOCATIONS
1997 1996 1997 1996 1997 1996 1997 1996 1997 1996
____________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
For the third quarter:
Locations open at
beginning of period 1,169 1,228 2 8 225 194 1,373 1,311 2,769 2,741
Opened 14 15 1 - 12 42 107 96 134 153
Closed (35) (18) - - (12) (27) (69) (68) (116) (113)
Locations transferred 1 6 (1) (7) - - - 1 - -
____________________________________________________________________
Locations open at
end of period 1,149 1,231 2 1 225 209 1,411 1,340 2,787 2,781
====================================================================
</TABLE>
Sequential Page No. 10
<TABLE>
<CAPTION>
NON-
FRANCHISED COMPANY INTERNATIONAL TRADITIONAL TOTAL
STORES STORES LOCATIONS LOCATIONS LOCATIONS
1997 1996 1997 1996 1997 1996 1997 1996 1997 1996
____________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
For the first nine months:
Locations open at
beginning of period 1,198 1,218 2 42 201 187 1,297 1,273 2,698 2,720
Opened 47 29 1 - 48 64 263 262 359 355 55
Closed (97) (46) - (1) (24) (42) (149) (205) (270) (294)
Locations transferred 1 30 (1) (40) - - - 10 - -
____________________________________________________________________
Locations open at
end of period 1,149 1,231 2 1 225 209 1,411 1,340 2,787 2,781
====================================================================
</TABLE>
Included in the franchised and Company store information are
87 and 127 "TCBY"(Registered) stores closed for relocation
or for the season on August 31, 1997 and 1996, respectively.
During the first nine months of 1997, significantly more
TCBY(Registered) non-traditional locations than traditional
locations opened. While the Company has placed and
continues to place emphasis upon both traditional and
non-traditional locations, the Company has experienced more
non-traditional development in the last two years. The
Company believes this trend will continue for the remainder
of 1997. While different in size and character, each
TCBY(Registered) location is treated the same in the site
evaluation process, and the Company intends to avoid
approving the placement of a new TCBY(Registered) location,
be it traditional or non-traditional, so close to any
existing TCBY(Registered) location that sales of the two
locations would be materially impacted. The non-traditional
locations include sites at airports, travel plazas,
convenience stores, colleges, hospitals, theme parks, and
stadiums. The Company continues to focus on the development
of locations in conjunction with petroleum stores and other
food concepts (co-branded locations). The majority of the
263 non-traditional openings in the first nine months of
1997 were co-branded. The Company's current experience is
that the volume of yogurt of these locations will exceed
that of other types of non-traditional locations with the
exception of airports. During the first nine months of
1997, 149 non-traditional locations were closed. These
locations generally purchased low volumes of yogurt from the
Company. The Company expects that there may be additional
closings of low volume non-traditional locations as they are
not efficient for the Company to service or the customer to
operate. These closings are not expected to have a material
impact on yogurt sales, but will allow the Company's support
services to be more effective and efficient.
Sequential Page No. 11
Sales of specialty products increased 116 percent and 80
percent during the third quarter and first nine months of
1997, respectively, as compared to the same periods in 1996.
A majority of this increase is attributed to increased sales
of private label products. The Company has pursued private
label opportunities to utilize available capacity at its
manufacturing facility in Dallas. Sales improvements have
also occurred due to the introduction of new
"TCBY"(Registered) products primarily through club stores.
Retail sales by Company-owned stores declined due to the
Company's implementation during 1996 of its decision to
franchise or close most of its "TCBY"(Registered)
Company-owned stores. The Company took this action as it
believes the stores could operate more effectively with
local ownership. The divestiture of the stores will lower
sales in the food products segment in 1997 as the Company
operated units for a portion of 1996.
Sales in the Company's equipment segment include (i) sales
from the distribution of equipment to the foodservice
industry and (ii) sales of manufactured mobile kitchens and
other specialty vehicles primarily to businesses and
governments.
Sales in the equipment segment increased four percent and
six percent during the third quarter and the first nine
months of 1997, respectively, as compared to the same
periods in the prior year. This improvement in sales is
primarily due to the opening of non-traditional
"TCBY"(Registered) locations, some of which purchased a
portion of their original equipment packages from the
Company's equipment distributor. This increase was
partially offset by decreased sales at the Company's
equipment manufacturer. In July, 1997, the Company sold a
portion of the equipment manufacturer's assets to a company
controlled by the subsidiary's president. The assets sold
included certain inventory, plant equipment, furniture and
fixtures, and intangibles. The transaction was partially
financed by the Company. The Company retained certain
inventory items which will be marketed with the assistance
of the new company. In addition, the real property was
retained by the Company and leased to the purchaser. This
transaction could result in lower sales in the equipment
segment during the remainder of 1997.
As a percent of sales, cost of sales for the third quarter
and first nine months of 1997 and 1996 for the Company and
its two primary segments are presented below:
<TABLE>
<CAPTION>
Third Quarter First Nine Months
_____________ _________________
1997 1996 1997 1996
______________________________________________________________
<S> <C> <C> <C> <C>
Food Products Segment 64% 63% 65% 62%
Equipment Segment 79% 74% 78% 76%
Company Total 66% 64% 67% 64%
</TABLE>
Sequential Page 12
The increase in the food products segment cost of sales
percentage is due to a number of factors including the
Company's decision to franchise or close most of its
"TCBY"(Registered) Company-owned stores. These stores had a
lower cost of sales percentage than the other categories of
the food products segment noted above. Therefore, as such
stores were sold or closed, cost of sales as a percent of
sales increased in the food products segment.
In addition, sales of specialty products, which generally
have a higher cost of sales percentage than the other food
segment categories, were a larger component of the food
products segment sales during 1997 compared to the prior
year. (See earlier discussion related to these sales
increases.) Cost of sales during 1997 have been favorably
impacted by a decrease in dairy prices which are a major
component of the Company's cost of sales. The Company's
dairy costs are expected to be lower in the fourth quarter
of 1997 compared to 1996.
Franchising revenues consist of initial franchise and
license fees and royalty income. In the third quarter of
1997, initial franchise and license fees increased 17
percent while royalty income decreased four percent from the
same period in 1996. The improvement in franchise and
license fees resulted primarily from increased development
of non-traditional locations as noted above. The decrease
in royalty income is primarily attributable to a decrease in
domestic royalties as a result of the decrease in the number
of domestic traditional "TCBY"(Registered) stores and the
decline in yogurt purchases by the operating stores as noted
above which was partially offset by the increase in the
number of non-traditional locations.
In the first nine months of 1997, initial franchise and
license fees increased 67 percent while royalty income
increased two percent. The improvement in franchise and
license fees resulted primarily from increased initial
international franchise fees. The increase in royalty
income is primarily attributable to the growth in
non-traditional locations referred to above, along with
expanded distribution in international markets. These
increases were partially offset by changes in domestic
traditional "TCBY"(Registered) stores discussed in the
preceding paragraph.
Operating expenses were comparable in the third quarter of
1997 to the same period in 1996 while a decrease of four
percent was experienced in the first nine months of 1997
compared to 1996. The decrease for the nine month period
relates to reduced operating expenses of corporate stores
due to the franchising or closing of these units as
discussed above. As a percentage of combined sales and
franchising revenues, operating expenses were 23 percent and
26 percent for the third quarter of 1997 and 1996,
respectively. For the first nine months of 1997 and 1996,
operating expenses as a percentage of combined sales and
franchising revenues were 29 percent and 33 percent,
respectively.
Sequential Page No. 13
The Company and its representatives may from time to time
make written or oral forward-looking statements with respect
to their current views and estimates of future economic
circumstances, industry conditions, company performance, and
financial results. These forward-looking statements are
based on certain assumptions regarding the economy, unit
openings and closings, sales volumes per unit, manufacturing
opportunities, no changes in governmental regulation of the
food industry, and no material event which would impact the
reputation of the Company's manufacturing facility or the
Company's ability to utilize that facility. Should the
Company's performance differ materially from the assumptions
regarding these areas, actual results could vary
significantly from the performance noted in the
forward-looking statements. Thus, the Company cautions
readers not to place undue reliance on any forward-looking
statements, which speak only as of the date made.
LIQUIDITY AND CAPITAL RESOURCES
The Company has historically generated cash from operations
sufficient to meet its normal operating requirements. The
Company's cash and short-term investments increased approxi-
mately $.7 million during the first nine months of 1997.
This change resulted primarily from increased net income
which was partially offset by (i) purchases of treasury
stock, (ii) an increase in trade accounts receivable
primarily attributed to the normal seasonal increase along
with expansion in the private label market, and (iii) cash
dividends. The Company's foreseeable cash needs for
operations and capital expenditures are expected to be met
through cash flows from operations; however, the Company has
available a $5 million unsecured credit line to meet
seasonal cash needs.
In December 1995, the Company was authorized to repurchase
up to three million shares of its outstanding common stock.
Subsequently, repurchases have totaled 1,800,400 shares with
762,700 shares purchased in the first n ine months of 1997.
The repurchases were funded with cash flows from operations.
Future repurchases may be funded with cash flows from
operations or long-term financing.
The following summarizes statistics related to the Company's
financial position:
<TABLE>
<CAPTION>
August 31, November 30,
1997 1996
____________ _____________
<S> <C> <C>
Current Ratio 3.4 to 1.0 4.1 to 1.0
Working Capital (in millions) $34.9 $33.9
Long-Term Debt to Equity Ratio .09 to 1.0 .12 to 1.0
Tangible Net Worth (in millions) $75.0 $74.7
</TABLE>
On September 13, 1997, the Company's Board of Directors
declared a five cents per share dividend payable on October
10, 1997 to the stockholders of record on September 25,
1997. The Company will consider adjustments to the dividend
rate after giving consideration to return to stockholders,
profitability expectations and financing needs.
Sequential Page No. 14
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There were no changes from previously reported litigation.
<TABLE>
<CAPTION>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
<S> <C>
a) Exhibits
27 Article 5, Financial Data Schedule for the Third
Quarter Fiscal 1997 Form 10-Q
99(a) Press release, dated June 23, 1997, "Mixed Double
and Island Fantasy Promotions Highlight Summer at
TCBY"
99(b) Press release, dated June 30, 1997, "TCBY
Enterprises, Inc. Names Jim Fink President of
Americana Foods"
99(c) Press release, dated July 23, 1997, "TCBY
Announces Sale of Carlin Manufacturing to Company
President"
99(d) Press release, dated July 24, 1997, "TCBY Signs
Development Agreement with TravelCenters of
America, Inc."
99(e) Press release, dated August 4, 1997, "TCBY Signs
Development Agreement with Total Petroleum"
99(f) Press release, dated August 22, 1997, "Pretzel
Time and TCBY Announce Openings of 20th
Co-Branded Location"
99(g) Press release, dated September 10, 1997, "TCBY
Net Income Up 35%, Over 300 Stores Under
Development"
99(h) Press release, dated September 12, 1997, "TCBY
Declares Cash Dividend"
</TABLE>
b) The Company did not file any reports on Form
8-K during the three months ended August 31, 1997.
Sequential Page No. 15
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.
TCBY ENTERPRISES, INC.
Date: 10/14/97 /s/ Frank D. Hickingbotham
___________________________
Frank D. Hickingbotham,
Chairman of the Board and
Chief Executive Officer
Date: 10/14/97 /s/ Gene H. Whisenhunt
___________________________
Gene H. Whisenhunt,
Executive Vice President
Chief Financial Officer
Sequential Page No. 16
EXHIBIT 27
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AS OF AUGUST
31, 1997 AND THE CONSOLIDATED STATEMENT OF INCOME FOR THE
QUARTER ENDED AUGUST 31, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-END> AUG-31-1997
<CASH> 15,716,842
<SECURITIES> 4,172,553
<RECEIVABLES> 16,825,590
<ALLOWANCES> 1,112,957
<INVENTORY> 10,655,938
<CURRENT-ASSETS> 49,674,382
<PP&E> 80,047,345
<DEPRECIATION> 38,883,469
<TOTAL-ASSETS> 105,089,252
<CURRENT-LIABILITIES> 14,779,175
<BONDS> 7,090,870
<COMMON> 2,708,457
0
0
<OTHER-SE> 76,795,323
<TOTAL-LIABILITY-AND-EQUITY> 105,089,252
<SALES> 30,018,752
<TOTAL-REVENUES> 34,137,907
<CGS> 19,782,608
<TOTAL-COSTS> 19,782,608
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 15,699
<INTEREST-EXPENSE> 189,762
<INCOME-PRETAX> 6,654,074
<INCOME-TAX> 2,328,928
<INCOME-CONTINUING> 4,325,146
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,325,146
<EPS-PRIMARY> .18
<EPS-DILUTED> .18
</TABLE>
Exhibit 99(a)
PRESS RELEASE
FOR IMMEDIATE RELEASE
MONDAY
JUNE 23, 1997
CONTACT PERSON: STACY DUCKETT, VICE PRESIDENT
CORPORATE COMMUNICATIONS<PAGE>
(501) 688-8229
MIXED DOUBLE AND ISLAND FANTASY PROMOTIONS
HIGHLIGHT SUMMER AT TCBY
Two new promotions will reinforce each other this summer at
as many as 1300 participating "TCBY" Treats(Registered)
shops. The Island Fantasy Sweepstakes and the Mixed Double
product promotions kick off simultaneously on June 29.
The Island Fantasy Sweepstakes will send one TCBY customer
and nine friends to an all-expense paid resort vacation on a
private Caribbean island. One phone call to a toll-free
registration number distributed at "TCBY" Treats(Registered)
shops will automatically enter each caller in the
Sweepstakes. The promotion is the brand's first national
sweepstakes promotion to be supported by national media.
In-store displays will be supplemented by national radio and
print, as well as with local media. Promotion partners
include AT&T True Rewards, MoviePhone, Cineplex Odeon movie
theaters, and the E Entertainment and Fit TV cable networks.
"We wanted to give people a new reason to visit a TCBY
Treats shop. The Island Fantasy promotion clearly takes the
classic vacation sweepstakes to the next level," said Tony
Passarello, Senior Vice President of Marketing.
The Mixed Double is a swirl and two soft serve frozen yogurt
or sorbet flavors with two scoops of topping, served in a
tall parfait glass. The product will be offered for a
limited time only through July, and will be locally
value-priced. The promotion will be supported with in-store
P.O.P. and local media.
"The Mixed Double is our way of thanking long time customers
with a great value on an old favorite just as summer weather
heats up," said Passarello. "The Mixed Double is a new
twist on our popular soft-serve frozen yogurt and sorbet
cups with toppings. It was immensely successful during
store testing."
TCBY Enterprises, Inc., through subsidiary companies,
manufactures and sells soft-serve frozen yogurt, soft-serve
sorbet, hardpack frozen yogurt, hardpack ice cream, and
frozen novelty products, and markets foodservice equipment.
The Company is the world's largest manufacturer-franchisor
of frozen yogurt. The Company, through subsidiaries,
develops locations and products under the "TCBY"(Registered)
and Juice Works(Registered) brands.
-30-
Exhibit 99(b)
PRESS RELEASE
FOR IMMEDIATE RELEASE
MONDAY
JUNE 30, 1997
CONTACT PERSON: STACY DUCKETT, VICE PRESIDENT
CORPORATE COMMUNICATIONS
(501) 688-8229
TCBY ENTERPRISES, INC. NAMES
JIM FINK PRESIDENT OF AMERICANA FOODS
LITTLE ROCK, AR - Monday (June 30, 1997) - TCBY ENTERPRISES,
INC. (NYSE:TBY) has named Jim Fink as President of Americana
Foods, the Company's manufacturing facility located in
Dallas, Texas. Americana Foods is a state of the art
216,000 s.f. production facility employing over 250 persons,
and was recently named one of the Top 5 food processors in
the country by Prepared Foods magazine. Americana
produces all of the frozen treat items for
"TCBY"(Registered) locations, "TCBY"(Registered) retail
products, and co-packs proprietary products for some of the
leading foodservice companies in America.
Mr. Fink will retain his current duties as Executive Vice
President at TCBY Enterprises, Inc. supervising three other
of the companies major divisions.
Mr. Fink obtained his Bachelor of Arts degree in Business
Administration from Rhodes College in 1979 and began his
career with Ernst & Young. In 1983 he began working with
TCBY Enterprises, Inc. in conjunction with the Company going
public. In 1989, he joined TCBY as Vice President of
Accounting, later becoming Senior Vice President of
Accounting. In 1994, Fink was promoted to Executive Vice
President.
"Jim Fink has distinguished himself in every area of
responsibility he has handled for the Company. His
contributions to the growth of TCBY over the years have been
significant and have positioned him well to manage his new
responsibilities," said Frank D. Hickingbotham, Chairman of
the Board and CEO of TCBY Enterprises, Inc. "He has been
overseeing Americana Foods for the past several months and
this promotion will provide permanence to that role."
TCBY Enterprises, Inc. through subsidiary companies,
manufactures and sells soft serve frozen yogurt and sorbet,
hardpack frozen yogurt, hardpack ice cream, and frozen
novelty products, and markets foodservice equipment. The
Company is the world's largest manufacturer-franchisor of
frozen yogurt. The Company, through subsidiaries, develops
locations and products under the "TCBY"(Registered) and
Juice Works(Registered) brands.
-30-
Exhibit 99(c)
PRESS RELEASE
FOR IMMEDIATE RELEASE
WEDNESDAY
JULY 23, 1997
CONTACT PERSON: STACY DUCKETT, VICE PRESIDENT
CORPORATE COMMUNICATIONS
(501) 688-8229
AND GLENN HOM
(714) 547-6383
TCBY ANNOUNCES SALE OF CARLIN MANUFACTURING
TO COMPANY PRESIDENT
LITTLE ROCK, AR - Wednesday (July 23, 1997) - TCBY
ENTERPRISES, INC. (NYSE:TBY) today announced the sale of its
subsidiary, Carlin Manufacturing--an international leader in
mobile foodservice solutions--to Carlin President Ralph
Goldbeck, who seeks to redirect the company's corporate
strategy toward the most profitable foodservice segments.
"When TCBY originally announced its intent to divest Carlin
to concentrate on its core business, I knew the opportunity
was perfect for Carlin as well," said Goldbeck. "This
company can now do the same by channeling resources toward
what we do best, building and designing mobile kitchens for
the foodservice industry."
Prior to the acquisition, Carlin also built foodservice
kiosks and customized specialty vehicles for communications,
retail and medical applications.
Goldbeck was named vice president of Carlin Manufacturing in
1986 and later took over as president in 1993. The company
attracted many high-profile clients under his leadership,
with projects such as the Oscar Mayer Weinermobile and
Burger King Mobile Kitchens.
Since then, Carlin has established a strong reputation for
quality and dependability, with vehicles operating in 28
countries worldwide. Recent accounts have included the
successful Motorola FoodWorks Mobile Kitchens and the Golden
Gate Bridge Cafe in San Francisco, Calif.
"Strategic decisions made and implemented by the company in
1996 included the sale of Carlin," said TCBY Chairman and
CEO Frank D. Hickingbotham. "While we certainly intend to
remain a customer, we determined that Carlin would operate
most successfully as its own company."
TCBY Enterprises, Inc., through subsidiary companies,
manufactures and sells soft serve frozen yogurt, hardpack
frozen yogurt, hardpack ice cream, and frozen novelty
products, and markets foodservice equipment. The Company is
the world's largest manufacturer-franchisor of frozen
yogurt. The Company, through subsidiaries, develops
locations and products under the TCBY"(Registered) and Juice
Works(Registered) brands.
-30-
Exhibit 99(d)
PRESS RELEASE
FOR IMMEDIATE RELEASE
THURSDAY
JULY 24, 1997
CONTACT PERSON: STACY DUCKETT, VICE PRESIDENT
TCBY ENTERPRISES, INC.
CORPORATE COMMUNICATIONS
(501) 688-8229
GUY McNEIL, DIRECTOR OF
FAST FOOD MARKETING
TRAVELCENTERS OF AMERICA, INC.
(216) 808-3068
TCBY SIGNS DEVELOPMENT AGREEMENT
WITH TRAVELCENTERS OF AMERICA, INC.
LITTLE ROCK, AR - Thursday (July 24, 1997) - TCBY
ENTERPRISES, INC. (NYSE:TBY) today announced it has signed a
development agreement with TravelCenters of America, Inc.
("TA"). Under terms of the agreement, "TCBY"
Treats(Registered) locations may be located in TA travel
centers. There are currently six locations under
development around the country. There are approximately 125
TA locations across the United States.
"TCBY is proud to be working with TA to develop locations,"
said Herren C. Hickingbotham, President of TCBY Enterprises,
Inc. "Convenience store development is a strong growth area
for us. TA will certainly make a positive contribution to
that growth."
"We are very excited to be working with TCBY," said Guy
McNeil, Director of Fast Food Marketing. "TA realized the
benefits of developing locations with branded concepts. A
TCBY Treats location is the perfect complement to our
operations."
TravelCenters of America, Inc., with headquarters in
Westlake, Ohio, is the largest centrally-operated network of
travel centers in the country serving highway travelers
coast to coast.
TCBY Enterprises, Inc., through subsidiary companies,
manufactures and sells soft serve frozen yogurt, hardpack
frozen yogurt, hardpack ice cream, and frozen novelty
products, and markets foodservice equipment. The Company is
the world's largest manufacturer-franchisor of frozen
yogurt. The Company, through subsidiaries, develops
locations and products under the "TCBY"(Registered) and
Juice Works(Registered) brands.
-30-
Exhibit 99(e)
PRESS RELEASE
FOR IMMEDIATE RELEASE
MONDAY
AUGUST 4, 1997
CONTACT PERSON: STACY DUCKETT
VICE PRESIDENT, CORPORATE
COMMUNICATIONS
TCBY ENTERPRISES, INC.
(501) 688-8229
CLIFF ADCOCK
TOTAL PETROLEUM
(303) 291-2152
TCBY SIGNS DEVELOPMENT AGREEMENT WITH TOTAL PETROLEUM
LITTLE ROCK, AR - (Monday, August 4) - TCBY ENTERPRISES,
INC. (NYSE:TBY) today announced it signed a development
agreement with Total Petroleum. The agreement will permit
the placement of "TCBY" Treats(Registered) locations in
Total convenience stores. There are currently 3 "TCBY"
Treats(Registered) locations open or under development at
Total outlets. There are more than 2,000 Total branded
locations in the United States.
"We are pleased to be working with Total Petroleum," said
Herren C. Hickingbotham, President of TCBY Enterprises, Inc.
"TCBY has been very successful in developing convenience
store locations, and we look forward to enhancing that
success through Total distributors."
"Total Petroleum is continually looking for ways to meet our
customers' needs for convenience and good food - fast. Our
new TCBY Treats(Registered) locations will be a great
addition to our store offerings and, we think, will be
popular with our customers," said Tommy Berry, Vice
President of Marketing for Total Petroleum.
Total Petroleum is a refiner and marketer of petroleum
products with refineries in Colorado, Oklahoma, and Michigan
and marketing activities in the central United States.
Headquartered in Denver, the Company employs approximately
6,400 people.
TCBY Enterprises, Inc., through subsidiary companies,
manufactures and sells soft serve frozen yogurt, hardpack
frozen yogurt, hardpack ice cream, and frozen novelty
products, and markets foodservice equipment. The Company is
the world's largest manufacturer-franchisor of frozen
yogurt. The Company, through subsidiaries, develops
locations and products under the "TCBY"(Registered) and
Juice Works(Registered) brands.
-30-
Exhibit 99(f)
PRESS RELEASE
FOR IMMEDIATE RELEASE
FRIDAY
AUGUST 22, 1997
CONTACT PERSON: STACY DUCKETT, VICE PRESIDENT
CORPORATE COMMUNICATIONS
TCBY ENTERPRISES, INC.
(501) 688-8229
PAM WETZEL, MARKETING/PR COORDINATOR
PRETZEL TIME, INC.
(717) 671-5610
PRETZEL TIME AND TCBY ANNOUNCE OPENING OF
20TH CO-BRANDED LOCATION
LITTLE ROCK, AR - Friday (August 22) - TCBY ENTERPRISES,
INC. (NYSE:TBY) AND PRETZEL TIME, INC. today announced the
opening of the 20th co-branded location at the Fox Run Mall
in Newington, New Hampshire, the first Pretzel Time/"TCBY"
Treats dual concept for Pretzel Time franchisees, Patty and
Steve Krukoff.
There are currently 20 "TCBY" Treats locations operating in
Pretzel Time outlets around the country and Pretzel Time has
signed franchise agreements for an additional 4 locations
that are slated to open within the next few months. Pretzel
Time anticipates additional openings over the next few
years.
TCBY executed a development agreement with Pretzel Time,
Inc. in July, 1994 which allows for the development of
"TCBY" Treats locations within Pretzel Time retail outlets.
There are approximately 250 Pretzel Time locations in the
United States and Canada.
"We are so pleased to announce the opening of the 20th
Pretzel Time/TCBY location," said Jim Sahene, President of
TCBY Systems, Inc. "These locations have been a source of
growth for TCBY in malls, and we expect t his to continue.
Pretzel Time has been and will continue to be an important
part of our co-branding program."
"Our relationship with TCBY has been great," said Rich
Hankins, President of Pretzel Time, Inc. "The addition of
frozen yogurt to the pretzel line offers our customers a
greater variety of delicious, low-fat products and provides
operators with the ability to diversify product lines, avoid
seasonal sales declines, and increase profit margin. We are
proud to open our 20th dual concept, and look forward to the
many co-branding opportunities with TCBY in the future."
Pretzel Time, Inc. is a franchisor and operator of
hand-rolled soft pretzel outlets located primarily in
regional and super-regional malls throughout the United
States and Canada. The company specializes in the sale of
hot, fresh baked pretzels; specialty toppings; and drinks.
In addition to the traditional pretzel with butter and salt,
unsalted and unbuttered pretzels are available upon request,
as well as a great variety of specialty pretzels, such as,
Cinnamon Raisin, Chocolate Chip, Sesame Seed, Poppy Seed,
Pizza, Caramel Crunch, Pretzel Bites and Pretzel Dogs.
TCBY Enterprises, Inc., through subsidiary companies,
manufactures and sells soft serve frozen yogurt and sorbet,
hardpack frozen yogurt, hardpack ice cream, and frozen
novelty products, and markets foodservice equipment. The
Company is the world's largest manufacturer-franchisor of
frozen yogurt. The Company, through subsidiaries, develops
locations and products under the "TCBY"(Registered) and
Juice Works(Registered) brands.
-30-
Exhibit 99(g)
PRESS RELEASE
FOR IMMEDIATE RELEASE
WEDNESDAY
SEPTEMBER 10, 1997
CONTACT PERSON: STACY DUCKETT, VICE PRESIDENT
CORPORATE COMMUNICATIONS
(501) 688-8229
TCBY NET INCOME UP 35%
OVER 300 STORES UNDER DEVELOPMENT<PAGE>
LITTLE ROCK, AR - (Wednesday) September 10, 1997 - TCBY
ENTERPRISES, INC. (NYSE:TBY) today announced net income for
the first nine months of 1997 increased 35 percent to
$7,701,787, or $.32 per share, from $5,703,931, or $.23 per
share, for the same period in 1996. Net income for the
third quarter of 1997 increased to $4,325,146, or $.18 per
share, from $3,755,387, or $.15 per share, for the same
period of 1996.
Sales and franchising revenues for the first nine months of
1997 increased to $83,793,631 from $75,443,872 in 1996.
While this represents an 11 percent improvement in revenues,
the increase in sales and franchising revenues excluding
Company-owned units (which were franchised or closed during
1996) and sales from Carlin Manufacturing (a company
subsidiary divested in the third quarter of 1997) is 16
percent. Sales and franchising revenues for the third
quarter of 1997 increased to $34,137,907 from $30,221,179
last year, a 13 percent improvement. The increase in sales
and franchising revenues during both periods is primarily
attributable to the Company's continued development of
co-branded locations, increased distribution of
"TCBY"(Registered) branded products through retail channels,
private label manufacturing opportunities, and expanded
international development.
There were 2,766 "TCBY"(Registered) locations and 21 Juice
Works(Registered) locations open, as well as several
thousand retail points-of-sale for "TCBY"(Registered)
products worldwide, at the conclusion of the third quarter
of 1997. There were over 300 "TCBY"(Registered) locations
and 17 Juice Works(Registered) locations under agreement for
development. Most of the "TCBY"(Registered) locations under
development will be co-branded locations with other food or
petroleum operations.
During the third quarter, the International division
finalized a new franchise agreement for several islands in
the eastern Caribbean, including Trinidad and Tobago,
Barbados, and St. Lucia. The Company now has development
agreements in over 65 countries.
In July, the Company announced the completion of the sale of
Carlin Manufacturing, Inc., a manufacturer of specialty
vehicles. This sale was part of the overall strategic plan
previously announced by the Company in order to refocus on
its core businesses.
"Development opportunities for additional TCBY locations in
conjunction with our co-branding partners remain great,"
said Frank D. Hickingbotham, Chairman and Chief Executive
Officer. "We are pleased with our third quarter results and
now have experienced seven consecutive quarters of income
improvements over the prior periods. The Company expects
these improvements to continue throughout the remainder of
1997 and into 1998."
The above quote contains forward-looking statements based on
certain assumptions regarding the economy, unit openings and
closings, sales volumes per unit and other manufacturing
opportunities. Should the Company's performance differ
materially from the assumptions regarding these areas,
actual results could vary significantly from the performance
noted in the forward-looking statements.
On September 3, the Company launched its web site at
www.tcby.com. The site includes information on the Company,
new product announcements, current press releases, and
franchising details.
TCBY Enterprises, Inc., through subsidiary companies,
manufactures and sells soft serve frozen yogurt, soft serve
sorbet, hardpack frozen yogurt, hardpack ice cream, and
frozen novelty products, and markets foodservice equipment.
The Company is the world's largest manufacturer-franchisor
of frozen yogurt. The Company, through subsidiaries,
develops locations and products under the "TCBY"(Registered)
and Juice Works(Registered) brands.
TCBY Enterprises, Inc.
Selected Financial Highlights
($000, Except Per Share Amounts)
<TABLE>
<CAPTION>
(Unaudited)
Quarter Ended Nine Months Ended
August 31 August 31 August 31 August 31
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Operating Results
Sales & Franchising Revenue $34,138 $ 30,221 $83,794 $ 75,444
Net Income $ 4,325 $ 3,755 $ 7,702 $ 5,704
Net Income Per Share $ .18 $ .15 $ .32 $ .23
Average Shares Outstanding 23,881 25,036 24,168 25,293
Dividends Paid Per Share $ .05 $ .05 $ .15 $ .15
</TABLE>
<TABLE>
<CAPTION>
August 31 November 30
1997 1996
<S> <C> <C>
Financial Position
Current Assets $ 49,674 $ 44,706
Current Liabilities $ 14,779 $ 10,777
Property, Plant & Equipment, net $ 41,164 $ 43,339
Total Assets $105,089 $102,468
Long-term Debt, less current portion $ 7,091 $ 9,469
Stockholders' Equity $ 97,604 $ 93,419
Less Treasury Stock $(18,100) $(14,198)
Total Stockholders' Equity $ 79,504 $ 79,221
</TABLE>
-30-
Exhibit 99(h)
PRESS RELEASE
FOR IMMEDIATE RELEASE
FRIDAY
SEPTEMBER 12, 1997
CONTACT PERSON: STACY DUCKETT, VICE PRESIDENT
CORPORATE COMMUNICATIONS
(501) 688-8229
TCBY DECLARES CASH DIVIDEND
LITTLE ROCK, AR - September 12, 1997 - TCBY ENTERPRISES,
INC. (NYSE:TBY) today announced the Board of Directors of
the Company declared a $.05 per share cash dividend. This
dividend is payable on October 10, 1997 to shareholders of
record as of September 25, 1997.
TCBY Enterprises, Inc., through subsidiary companies,
manufactures and sells soft serve frozen yogurt, soft serve
sorbet, hardpack frozen yogurt, hardpack ice cream, and
frozen novelty products, and markets foodservice equipment.
The Company is the world's largest manufacturer-franchisor
of frozen yogurt. The Company, through subsidiaries,
develops locations and products under the "TCBY"(Registered)
and Juice Works(Registered) brands.
-30-
