SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported) March 24, 2000
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TCBY Enterprises, Inc.
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Delaware 1-10046 71-0552115
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(State or other (Commission (I.R.S.Employer
jurisdiction File Number) Identification No.)
of incorporation)
425 West Capitol Avenue, Little Rock, AR 72201
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(Address of principal executive offices)
Registrant's telephone number, including area code (501) 688-8229
_______________
_________________________________________________________________
(Former name or former address, if changed since last report.)
ITEM 5: Other Events
PRESS RELEASE
FOR IMMEDIATE RELEASE
WEDNESDAY
MARCH 22, 2000
CONTACT PERSON: STACY DUCKETT, VICE PRESIDENT,
INVESTOR RELATIONS
TCBY ENTERPRISES, INC.
TCBY REPORTS OPERATING RESULTS FOR FIRST QUARTER
LITTLE ROCK, AR -(Wednesday, March 22, 2000)- TCBY
ENTERPRISES, INC. (NYSE:TBY) today announced operating
results for the first quarter of 2000. Net income before
write-off of accounts receivable in 2000 was $519,878, or
$.02 per share (basic and diluted), as compared to $610,056,
or $.03 per share (basic and diluted), for the same period
in 1999. As previously reported, the Company's primary
distributor, AmeriServe Food Distribution, Inc., filed for
reorganization under Chapter 11 of the Bankruptcy Code.
After a reserve of approximately $2.9 million ($.08 per
share, basic and diluted) primarily related to the Chapter
11 filing of AmeriServe, the Company's reported net loss was
$1,360,351, or $.06 per share (basic and diluted) in the
first quarter of 2000 compared to net income of $598,563, or
$.03 per share (basic and diluted), for the same period in
1999.
Sales and franchising revenues were $19,005,494 for the
first quarter of 2000 compared to $21,006,003 for the same
period in 1999. Several factors affect the comparison of
sales: (1) limited shipments of products from TCBY's
manufacturing subsidiary were released to AmeriServe during
February while post-reorganization arrangements were
negotiated; AmeriServe's inventory was replenished in early
March; (2) most private label customers pay the cost of
materials plus a fixed rate for TCBY to manufacture their
products; revenues are $1.2 million lower due to the decline
in dairy costs during the first quarter of 2000 as compared
to 1999. Actual units of private label products sold were
up 47% in 2000; and (3) revenue from initial international
fees was approximately $560,000 higher in 1999 than 2000.
These fees are cyclical and the current international
activity indicates the sale of several master franchise
agreements may be completed during the second quarter of
2000.
As of February 27, 2000, there were 3,014 TCBY(registered)
and Juice Works (registered) locations open, as well as,
several thousand retail points of sale for TCBY products
worldwide. In addition, there were over 300 TCBY
(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. As previously announced, Multi-Unit Solutions,
Inc. (MUS), a division of Pocahontas Foods USA will be the
Company's primary distributor. The process of establishing
inventories at MUS is nearing completion and MUS should be
delivering throughout most of the United States by April 1.
During this transition from AmeriServe to MUS, store
openings, in some cases, have been delayed.
During the first quarter, the Company announced an agreement
had been reached with Capricorn Investors III, L.P., in
which all shares of the common stock of TCBY will be
acquired in a merger transaction for $6.00 per share. An
affiliate of Capricorn is the principal shareholder of Mrs.
Fields' Holdings, Inc. which controls other food concepts
including Mrs. Fields and Pretzel Time. The Company expects
the sale to close during the second quarter.
The Company will not mail an annual report to stockholders
for 1999. The Form 10-K for 1999 was filed on February 25
and is available at the SEC's website (www.sec.gov), or by
calling the Company. Proxy materials were mailed on March 17
to stockholders of record as of March 14. A special meeting
of stockholders will be held April 18 for purposes of voting
on the proposed merger.
The forward-looking statements contained in this release are
based upon certain assumptions regarding U. S. and foreign
economic conditions, no significant disruptions of business
related to the distribution systems for the Company's
products, competition, cost of raw materials, unit openings
and closings, sales volumes per unit, other 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. Statements
regarding the timing and likelihood of closing of the
Company's merger agreement with Capricorn are conditional
upon the satisfaction or waiver of all conditions set forth
in the merger agreement, a copy of which has been filed with
the U. S. Securities and Exchange Commission. Such
conditions include receipt of approval for the merger by the
Company's shareholders and receipt of financing by
Capricorn. 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 as of the date made.
TCBY Enterprises, Inc., through subsidiary companies,
manufactures and sells soft serve frozen yogurt and sorbet,
hardpack frozen yogurt and ice cream, and frozen novelty
products; franchises locations under the TCBY(registered)
and Juice Works(registered) brands; and markets foodservice
equipment.
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TCBY Enterprises, Inc.
Selected Financial Highlights
($000, Except Per Share Amounts)
(Unaudited)
Quarter Ended
February 27 February 28
2000 1999
<S> <C> <C>
Operating Results
Sales & Franchising Revenue $ 19,005 $ 21,006
Net (Loss) Income $ ( 1,360) $ 599
Basic Earnings Per Share $ (.06) $ .03
Average Shares Outstanding 22,896 22,899
Diluted Earnings Per Share $ (.06) $ .03
Diluted Shares 22,913 23,328
Dividends Paid Per Share $ .05 $ .05
February 27 November 28
2000 1999
Financial Position
Current Assets $ 43,839 $ 43,657
Current Liabilities $ 9,272 $ 8,247
Property, Plant & Equipment, net $ 32,966 $ 33,463
Total Assets $ 89,398 $ 91,145
Long-term Debt, less current
portion $ 728 $ 994
Stockholders' Equity $108,600 $111,105
Less Treasury Stock $(32,536) $(32,536)
Total Stockholders' Equity $ 76,064 $ 78,569
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