<PAGE>
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: December 1, 1999
(Date of earliest event reported)
Sizzler International, Inc.
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(Exact name of Registrant as specified in its charter)
Delaware 1-10711 95-4307254
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(State of Incorporation) (Commission File No.) (IRS Employer Identification
Number)
6101 West Centinela Avenue, Suite 200, Culver City, CA 90230
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(Address of principal executive offices, including zip code)
(310) 568-0135
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(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On December 1, 1999 Sizzler International, Inc. (the "Registrant")
issued a press release with respect to its having entered into contracts for the
sale and leaseback of 49 of its Australian Sizzler and KFC properties, which
press release is filed herewith as Exhibit 99.1 and incorporated herein by this
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibit No. Description
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99.1 Press Release dated December 1, 1999.
SIGNATURE
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 hereunder duly authorized.
Sizzler International, Inc.
By: /s/ Steven R. Selcer
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Name: Steven R. Selcer
Title: Vice President and
Chief Financial Officer
Dated: December 3, 1999
<PAGE>
EXHIBIT 99.1
SIZZLER INTERNATIONAL, INC.
NEWS BULLETIN 6101 W. Centinela Ave., Suite 200
Culver City, CA 90230
(310) 568-0135
FROM: NYSE: SZ
FRB
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The Financial Relations Board, Inc.
FOR FURTHER INFORMATION:
<TABLE>
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
<S> <C> <C> <C>
Steven Selcer Paul Goodson Moira Conlon Marjorie Ornston
Vice President and CFO General Information Investor/Analyst Contact Media Contact
(310) 568-0135 (310) 442-0599 (310) 442-0599 (310) 442-0599
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</TABLE>
FOR IMMEDIATE RELEASE
Wednesday, December 1, 1999
SIZZLER INTERNATIONAL ENTERS INTO CONTRACTS TO MONETIZE 49 OF 67 PROPERTIES
SCHEDULED FOR SALE LEASEBACK
$28 Million to be Available for Capital Re-deployment
Highlights of the Transaction
. 49 parcels contracted thus far
. Net proceeds of $28 million (U.S.) expected
. 18 additional parcels being marketed to raise additional $7 million
(U.S.)
. Capital to be invested in restaurant remodeling and repositioning,
and acquisitions
CULVER CITY, CA - December 1, 1999 - Sizzler International, Inc. (NYSE: SZ),
today announced that it has entered into contracts to sell 49 of its Australian
Sizzler and KFC restaurants, representing the first tranche of its plans to
monetize 67 of its Australian properties under a sale-leaseback financing plan.
The Company is marketing the remaining 18 properties and expects to have them
contracted by the end of its current fiscal year, which ends April 30, 2000.
"Our sale leaseback transaction is strategically very important for Sizzler,"
remarked Charles Boppell, President and CEO. "The monetization of these assets
will simultaneously enable us to maximize our return on assets while providing
us with capital for carrying out our growth plans."
<PAGE>
Sizzler expects to repatriate approximately $28 million in net proceeds sometime
in early 2000 following the closing of the transactions. The Company estimates
the net proceeds from its remaining 18 Australian properties will be
approximately $7 million. In total, Sizzler expects to repatriate approximately
$40 million in net proceeds from the sale of its Australian properties and an
increase in its Australian debt facility.
Commenting on Sizzler's plans for the investment of the sale and leaseback
proceeds, Boppell said, "We intend to pursue a three-pronged strategy over the
next two years. We have already begun to improve the quality of the food we
serve and have increased our investment in our training programs. Over the next
18 months, we will be remodeling most of the Sizzler restaurants in our system,
updating the decor and bringing it in line with our new quality grill concept.
Finally, we plan to complete an acquisition of a restaurant concept that has
been proven successful in a variety of locations, and that can be expanded with
the application of our expertise and capital. As part of our financial strategy,
we have also recently announced our intention to buy back up to 1.5 million
shares of Sizzler common stock, which we consider to be significantly
undervalued."
About Sizzler
Sizzler International, Inc. operates, franchises or joint ventures 344 Sizzler
restaurants worldwide, in addition to 101 KFC restaurants in Queensland,
Australia. The company operates 65 of its U.S. Sizzler locations and 31
Australian locations. The company franchises 187 Sizzler locations in the U.S.
and 61 locations internationally. The company is listed on the New York Stock
Exchange under ticker symbol SZ.
Certain statements contained in this document may be deemed to be forward-
looking statements under federal securities laws, and Sizzler intends that such
forward-looking statements be subject to the safe-harbor created thereby. Such
forward-looking statements include, but are not limited to (i) Sizzler's ability
to deploy the capital obtained from the sale leaseback transaction in a way that
produces gains in revenues, net income, and shareholder value; (ii) Sizzler's
ability to successfully implement all of the elements of its strategic plan;
(iii) Sizzler's ability to complete an acquisition; and (iv) positive consumer
response to the changes being implemented by Sizzler at the restaurant level.
Sizzler cautions that these statements are qualified by important factors that
could cause actual results to differ materially from those reflected by the
forward-looking statements contained herein. Such factors include, but are not
limited to, (a) exchange rate fluctuations and other financial market changes
that could affect Sizzler's revenues and earnings; (b) the failure of Sizzler's
newly remodeled stores and/or new food offerings to offer a commercially
acceptable dining experience; (c) the failure of Sizzler's management to locate
and close on an acquisition candidate that meets the company's criteria, and (d)
other risks as detailed from time to time in Sizzler's SEC reports, including
Quarterly Reports on Form 10Q, Current Reports on Form 8-K, and Annual Reports
on Form 10-K.
For more information on Sizzler International, Inc. via facsimile at no cost,
simply call 1-800-PRO-INFO and dial client code "SZ."
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