SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) OCTOBER 15, 1999
VISTA EYECARE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Commission File No: 0-20001
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GEORGIA 58-1910859
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(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification
Number)
296 Grayson Highway
Lawrenceville, Georgia 30045
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(Address of Principal Executive Offices)
(770)-822-3600
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(Registrant's Telephone Number, including Area Code)
Not applicable
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
On October 15, 1999, the Registrant issued a Press Release, attached hereto
as Exhibit 99.
<PAGE>
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.
VISTA EYECARE, INC.
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(Registrant)
BY: /s/ Angus C. Morrison
Angus C. Morrison
Senior Vice President, Chief Financial
Officer and Treasurer
Dated: October 18, 1999
CONTACTS:
Angus C. Morrison
Senior Vice President, CFO & Treasurer
(770) 822-4285
www.vistaeyecare.com
Janice J. Kuntz
Fleishman-Hillard, Inc.
404-659-4446
FOR IMMEDIATE RELEASE:
October 15, 1999
VISTA EYECARE REVISES FORECAST FOR FISCAL 1999
LAWRENCEVILLE, Georgia - Vista Eyecare, Inc. (NASDAQ: VSTA), the national retail
optical company, today announced that, because of a continued sales shortfall in
the businesses it acquired in 1998, the company now expects a net loss of $0.14
per share in the third quarter and at least $.34 per share for fiscal 1999.
James W. Krause, Chairman and Chief Executive Officer, stated, "We are
disappointed in the operating results of the acquired businesses. We have
implemented training and merchandising programs. We have recently installed new
retail operations management and restructured the field management of our
acquired operations. Our time line for improvement will clearly be longer than
we originally anticipated. Given our current financial position, we will have to
look at alternatives to provide the company time to stabilize the businesses."
Notwithstanding the sales softness at the acquired businesses, the company
continues to see strong sales at its vision centers in Wal*Mart, where
comparable store sales have been 4.3% and 4.0% for the third quarter and the
year, respectively.
The company also indicated that the sales softness had placed increased pressure
on liquidity. The company indicated that it was exercising its thirty (30) day
grace period within which to make the $8 million interest payment scheduled to
be made on October 15, 1999 pursuant to its $125 million senior notes. Failure
by the company to make such payment by November 15, 1999 would constitute a
default under the senior notes indenture. The company also indicated that due to
poor results in the quarter, it is now in default under certain covenants in its
secured credit facility.
- more -
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Vista Eyecare, Inc.
October 15, 1999
Page Two
The company is currently reviewing a variety of options, including seeking
additional or alternative financing sources as well as changes in its capital
structure and its organization structure. The company is in the process of
retaining a financial advisor to assist it in evaluating its strategic
alternatives. Failure by the company to secure additional borrowings sufficient
to allow it to make the current interest payment on its senior notes or to
secure a waiver under its secured credit facility would have a material adverse
impact on the business and financial condition of the company.
Any expectations, beliefs, and other non-historical statements contained in this
press release are forward looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Act"). Actual results may differ
materially due to a variety of risk factors that affect the company. Such
factors are described in a cautionary statement for purposes of the "Safe
Harbor" provisions of the Act, contained in the company's reports on Form 10-K
for 1998 and on Form 10-Q's for the first and second quarters of 1999. In
addition, statements made in this press release are also subject to the
following risks: that the company will be unable to obtain additional financing;
that the company will be unable secure appropriate waivers under its credit
facility; that the company will be unable to improve its operations; and that
the company's relationships with its stakeholders will be adversely affected.
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