SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
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 0-19602
BAREFOOT INC.
(Exact name of registrant as specified in its charter)
Delaware 31-1265715
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
450 W. Wilson Bridge Road, Suite 160 43085
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (614) 846-1800
N/A
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) 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
The number of shares of registrant's only class of Common Stock outstanding on
April 30, 1996 was 14,603,510
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<PAGE>
INDEX
PART I. FINANCIAL INFORMATION
Page
No.
Item 1. Financial Statements:
Consolidated Statements of Income - Three-month periods
ended March 31, 1996 and 1995 (unaudited) .......................... 3
Consolidated Balance Sheets -- March 31, 1996 (unaudited)
March 31, 1995 and December 31, 1995 ............................... 4-5
Consolidated Statements of Cash Flows -- Three-month periods
ended March 31, 1996 and 1995 (unaudited) .......................... 6-7
Consolidated Statement of Shareholders' Equity - Three-month
period ended March 31, 1996 (unaudited) ............................ 8
Notes to Consolidated Financial Statements ......................... 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ............................. 10
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K ............................. 14
- - -----------
Note: Items 1 through 5 of Part II are omitted because they are not applicable.
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<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
BAREFOOT INC.
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED
MARCH 31,
1996 1995
---- ----
(unaudited)
REVENUES:
Customer service revenues ................ $ 9,351,116 $ 9,365,496
Franchise fees and royalty income ........ 229,657 219,261
------------ ------------
Total revenues ........................ 9,580,773 9,584,757
------------ ------------
COSTS AND EXPENSES:
Costs of services provided ............... 7,030,956 6,287,844
General and administrative ............... 6,376,488 6,362,123
Marketing ................................ 822,217 800,825
Amortization of intangibles .............. 530,222 541,770
------------ ------------
Total costs and expenses .............. 14,759,883 13,992,562
------------ ------------
LOSS BEFORE INTEREST AND
INCOME TAXES ............................... (5,179,110) (4,407,805)
Interest expense ......................... (245,748) (261,405)
Interest income .......................... 111,302 277,068
------------ ------------
LOSS BEFORE INCOME TAXES ................... (5,313,556) (4,392,142)
Income tax benefit ....................... 2,084,000 1,688,400
------------ ------------
NET LOSS ................................... $ (3,229,556) $ (2,703,742)
------------ ------------
LOSS PER COMMON SHARE ...................... $ (.22) $ (.16)
------------ ------------
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING ................................ 14,774,000 16,672,000
------------ ------------
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<PAGE>
BAREFOOT INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, MARCH 31, DECEMBER 31,
1996 1995 1995
(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents ......... $ 2,373,651 $15,189,330 $10,877,039
Short-term investments ............ 1,549,492 9,565,456 1,536,333
Receivables--
Customers, less allowance
for doubtful accounts of
$1,600,500, $1,600,000
and $1,516,000
respectively .................. 6,547,275 5,557,840 5,371,272
Franchises ...................... 2,390,557 1,892,122 1,277,715
Branchises (note 2) ............. 1,281,342 893,869 856,680
Other ........................... 749,127 855,723 864,976
Refundable income taxes ......... -- 1,833,000 --
Supplies .......................... 1,531,441 1,475,455 1,058,119
Prepaid advertising costs ........ 8,035,062 9,055,000 --
Other prepaid expenses ............ 1,120,364 1,705,823 1,861,656
Deferred taxes .................... -- -- 1,157,000
----------- ----------- -----------
Total current assets ............ 25,578,311 48,023,618 24,860,790
----------- ----------- -----------
PROPERTY AND EQUIPMENT, net of
accumulated deprecation and
amortization of $17,580,600,
$13,724,800 and $16,684,000
respectively .................... 14,423,988 13,267,574 10,977,754
OTHER ASSETS
Intangible assets, net of
accumulated amortization
of $8,573,700, $6,306,300
and $8,002,000, respectively .... 27,525,325 28,225,825 27,500,732
Deferred tax assets ............... 1,361,000 1,669,500 1,361,000
Other receivables ................. 1,813,724 1,577,458 1,221,096
Deposits .......................... 313,944 291,569 306,967
----------- ----------- -----------
Total other assets .............. 31,013,993 31,764,352 30,389,795
----------- ----------- -----------
Total assets .................... $71,016,292 $93,055,544 $66,228,339
----------- ----------- -----------
(Continued on next page)
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<PAGE>
BAREFOOT INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, MARCH 31, DECEMBER 31,
1996 1995 1995
(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion, long-term debt $ 950,000 $ 1,026,667 $ 950,000
Current portion, capital lease
obligations ................. 3,961,825 3,412,768 3,084,777
Customer prepayments ........... 12,839,668 13,433,821 4,089,776
Accrued taxes payable .......... -- 433,000 5,739,500
Accounts payable ............... 3,981,774 7,366,101 2,674,143
Accrued compensation and
payroll taxes ............... 2,599,339 2,392,248 1,602,500
Other accrued expenses ......... 972,515 594,057 723,024
Deferred taxes ................. 2,106,000 2,351,000 --
------------ ------------ ------------
Total current liabilities ... 27,411,121 31,009,662 18,863,720
------------ ------------ ------------
CAPITAL LEASE OBLIGATIONS ...... 9,555,106 8,344,922 6,319,410
LONG-TERM DEBT ................. 1,900,000 2,850,000 1,900,000
------------ ------------ ------------
Total liabilities ........... 38,866,227 42,204,584 27,083,130
------------ ------------ ------------
SHAREHOLDERS' EQUITY
Preferred Stock - 5,000,000
shares authorized, $.01
par value ................... -- -- --
Common Stock - 40,000,000 shares
authorized, $.01 par value,
shares issued-16,777,760
16,766,660 and 16,776,260
respectively; shares
outstanding - 14,595,760,
16,766,660 and 14,855,260,
respectively ................ 167,778 167,667 167,763
Additional paid-in capital ..... 49,903,040 49,853,493 49,892,555
Treasury stock, at cost ........ (25,834,884) -- (22,801,634)
Excess purchase price .......... (5,285,649) (5,285,649) (5,285,649)
Retained earnings .............. 13,199,780 6,115,449 17,172,174
------------ ------------ ------------
Total shareholders' equity .. 32,150,065 50,850,960 39,145,209
Total liabilities and ....... ------------ ------------ ------------
shareholders' equity ..... $ 71,016,292 $ 93,055,544 $ 66,228,339
------------ ------------ ------------
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<PAGE>
BAREFOOT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED
MARCH 31,
1996 1995
(unaudited)
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss ..................................... $(3,229,556) $(2,703,742)
Adjustments to reconcile net loss
to net cash used in operating
activities--
Deferred tax provision ................... 3,263,000 502,000
Depreciation and amortization ............ 1,428,895 1,322,833
Provision for uncollected customer
receivables ........................... 138,000 351,268
Notes receivable collected ............... 210,851 148,888
Changes in certain assets and
liabilities--
(Increase) decrease in assets -
Investments .......................... (13,159) 231,112
Receivables .......................... (2,838,891) (5,667,863)
Supplies ............................. (473,322) (423,531)
Prepaid expenses ..................... (7,293,770) (7,582,139)
Other assets ......................... (6,977) (39,265)
Increase (decrease) in liabilities--
Customer prepayments ................. 8,749,892 8,788,786
Accounts payable ..................... 1,307,631 2,829,462
Accrued income taxes ................. (5,739,500) (1,046,006)
Accrued expenses ..................... 1,246,330 1,810,136
----------- -----------
Net cash used in operating
activities ....................... (3,250,576) (1,478,061)
---------- ----------
(Continued on next page)
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<PAGE>
BAREFOOT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(consolidated)
THREE MONTHS ENDED
MARCH 31,
1996 1995
--- -----
(unaudited)
CASH FLOW FROM INVESTING ACTIVITIES:
Cash paid for acquired assets,
net of cash obtained ....................... (556,423) 336,479
Proceeds from investment in direct
financing leases and notes receivable ..... 105,836 70,904
Capital expenditures ......................... (256,815) (258,367)
------------ ------------
Net cash provided by (used in)
investing activities .................. (707,402) 149,016
------------ ------------
CASH FLOW FROM FINANCING ACTIVITIES:
Dividends paid ............................... (742,838) (500,105)
Treasury stock purchased ..................... (3,033,250) --
Stock option exercises ....................... 10,500 5,353
Term loan debt payments ...................... -- --
Capital lease principal payments ............. (779,822) (943,898)
------------ ------------
Net cash used in financing activities .... (4,545,410) (1,438,650)
---------- ----------
Net decrease in cash ................. (8,503,388) (2,767,695)
---------- ----------
CASH AND CASH EQUIVALENTS, beginning
of period ................................. 10,877,039 17,957,025
------------ ------------
CASH AND CASH EQUIVALENTS, end of period ..... $ 2,373,651 $ 15,189,330
------------ ------------
Supplemental disclosure of cash flows
information:
Interest paid during the period ............ $ 245,748 $ 261,405
Taxes paid during the period ............... $ 390,000 $ 547,000
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<PAGE>
<TABLE>
BAREFOOT INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1996
(unaudited)
DECEMBER 31, OPTIONS SHARES DIVIDENDS NET MARCH 31,
1995 EXERCISED REPURCHASED PAID LOSS 1996
<S> <C> <C> <C> <C> <C> <C>
COMMON SHARES
OUTSTANDING ....... 16,776,260 1,500 -- -- -- 16,777,760
------------ ------- ----------- --------- ----------- ------------
TREASURY SHARES ... 1,921,000 -- 261,000 -- -- 2,182,000
------------ ------- ----------- --------- ----------- ------------
PREFERRED STOCK ... $ -- $ -- $ -- $ -- $ --
COMMON STOCK ...... 167,763 15 -- -- -- $ 167,778
ADDITIONAL PAID-IN
CAPITAL ........... 49,892,555 10,485 -- -- -- 49,903,040
TREASURY STOCK .... (22,801,634) -- (3,033,250) -- -- (25,834,884)
EXCESS PURCHASE
PRICE ............. (5,285,649) -- -- -- -- (5,285,649)
RETAINED EARNINGS . 17,172,174 -- -- (742,838) (3,229,556) 13,199,780
------------ ------- ----------- --------- ----------- ------------
TOTAL SHAREHOLDERS'
EQUITY ............ $ 39,145,209 $10,500 $(3,033,250) $(742,838) $(3,229,556) $ 32,150,065
------------ ------- ----------- --------- ----------- ------------
</TABLE>
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<PAGE>
BAREFOOT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1- Unaudited Interim Consolidated Financial Statements
The accompanying interim consolidated financial statements as of March
31, 1996 and March 31, 1995 and for the three-month periods then ended are
unaudited. However, in the opinion of management, these interim statements
include all adjustments, consisting only of normal recurring adjustments,
necessary for a fair presentation of the financial position, results of
operations and cash flows of Barefoot Inc. and subsidiaries ("Barefoot" or the
"Company"). These financial statements should be read in conjunction with the
audited financial statements contained in Barefoot's Transition Report on Form
10-K for the nine month period ended December 31, 1995.
Note 2 - Prepaid Advertising Costs
Barefoot's accounting policy for marketing expenses for interim
reporting purposes is to defer the expenses when incurred and expense these
costs over the treating season. The Company's business is highly seasonal and
much of the marketing expenses are incurred in the first quarter when revenues
are lowest. The revenues generated by the customers signed up from the
marketing campaigns occur over the entire season, generally March through
November. Accordingly the related marketing costs are expensed over that same
period. For annual financial reporting purposes the Company has adopted SOP
93-7 "Reporting on Advertising Costs" and expenses all marketing costs which
are not direct response advertising costs in the year incurred.
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<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Barefoot provides lawn care service through periodic applications of
fertilizer and as-needed applications of weed and insect controls. Barefoot
also offers its lawn care customers additional service options including tree
and shrub care, lawn aeration, liming and seeding. Barefoot also generates
franchise fee and royalty income from its franchise system.
To assist in understanding Barefoot's operating results, the following
table indicates the percentage relationships of various items of income and
expense included in the Consolidated Statements of Income for the three-month
periods ended March 31, 1996 and 1995, respectively.
<TABLE>
Percentage Increase
(Decrease)
Percentage of Three Months
Total Revenues (1) Ended
Three Months March 31,
Ended 1996
March 31, vs
1996 1995 1995
---- ---- ----
<S> <C> <C> <C>
Customer service revenues ................ 97.6 97.7 (.2)
Franchise fee & royalty income ........... 2.4 2.3 4.7
--- ---
Total revenues ........................ 100.0 100.0 --
----- -----
Costs of services provided ............... 75.2 67.1 11.8
General and administrative ............... 66.6 66.4 .2
Marketing ................................ 8.8 8.6 2.7
Amortization of intangibles .............. 5.5 5.7 (2.1)
Total costs and expenses .............. 154.1 146.0 5.5
----- -----
Loss before interest and
income taxes ....................... (54.1) (46.0) (17.5)
----- -----
Interest expense ......................... (2.6) (2.7) (6.0)
Interest income .......................... 1.2 2.9 (59.8)
--- ---
Loss before income taxes .............. (55.5) (45.8) (21.0)
Income taxes ............................. 21.8 17.6 23.4
----- ----- ----
Net loss .............................. (33.7) (28.2) (19.4)
----- ----- ----
(1) Costs of services provided and marketing expenses are expressed as
percentages of customer service revenues.
</TABLE>
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<PAGE>
THREE MONTHS ENDED MARCH 31, 1996 COMPARED WITH THREE MONTHS ENDED
MARCH 31, 1995
REVENUES
Customer service revenues declined .2% to $9,351,000 for the three months
ended March 31, 1996 from $9,365,000 for the three months ended March 31,
1995. Cold and snow in many of Barefoot's larger markets in March 1996 caused
the decline in customer service revenues. Revenues from the interior plant
business which was acquired March 31, 1995 were nearly $560,000 in the March
1996 quarter. Thus, customer service revenues from lawn care operations
declined over 6.1% between the periods. In the comparable period in March 1995
the weather was dry and mild which provided for an earlier start to lawn and
tree shrub treatments.
Franchise fees and royalty income increased 2.3% to $230,000 in 1996's
first quarter from $219,000 in 1995's first quarter. The increase reflects the
opening of seven new franchise locations in 1996.
EXPENSES
Costs of services provided increased 11.8% to $7,031,000 in the three
months ended March 31, 1996 from $6,288,000 in the three months ended March
31, 1995. Costs of services increased as a percentage of customer service
revenues between years to 75.2% in the first quarter 1996 compared to 67.1% in
the first quarter of 1995. The increase in costs of services was primarily
from the weather causing lower productivity on treatments and sales activities
and the addition of four branchise locations and the interior plant business
at the end of the first quarter of 1995. As a result, first quarter 1996
operating expenses were higher from the acquisitions.
General and administrative expenses increased .2% and were almost flat as
a percent of total revenues at 66.6% in the 1996 period and 66.4% in the 1995
period. Reductions in employment related taxes and fringes in the 1996 period
were primarily responsible for offsetting increases from the greater number of
locations open in 1996 following the acquisitions on March 31, 1995.
Marketing expenses were $822,000 for the three months ended March 31,
1996 and $801,000 for the three months ended March 31, 1995. For interim
reporting purposes the Company defers the costs of its marketing campaigns and
expenses them over the treating season. The amounts expensed in the three
month periods ended March 31, 1996 and 1995 were in proportion to the revenues
recognized in the periods to total expected revenues for the seasons.
Interest expense declined 6.0% to $246,000 in the three months ended
March 31, 1996 from $261,000 in the three months ended March 31, 1995 due to
lower balances on the Lawnmark acquisition note. Interest income declined
nearly 60.0% to $111,000 in the first three months of 1996 from $277,000 for
the same period in 1995 due to lower cash balances available for investment in
1996 following the repurchase of nearly 2,200,000 shares of Barefoot Inc.
common stock in 1995 and thus far in 1996.
Income taxes were credited at a 39% effective tax rate in both periods
presented. Barefoot has retained a March 31 tax year after switching to the
calendar year for financial reporting purposes in 1995. The losses in the
quarters ended March 31, 1996 and 1995 reduce taxes owed for the tax returns
filed for the tax years ended March 31, 1996 and 1995.
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<PAGE>
Primarily as a result of the lower lawn care revenues and lower
productivity due to the weather, the net loss increased to $3,230,000 in
1996's first quarter from $2,704,000 in the first quarter of 1995, a 19.4%
increase.
The loss per share increased nearly 38% to $.22 per share for the three
months ended March 31, 1996 from a net loss of $.16 per share for the three
months ended March 31, 1995. The per share earnings were computed on
14,774,000 weighted average shares outstanding in the 1996 quarter and
16,672,000 in 1995. The lower number of shares outstanding in 1996 reflects
the repurchase of 2,182,000 shares in 1995 and 1996. Common stock equivalents
are not included in the weighted average shares calculation for either quarter
because their effect is anti-dilutive in periods where a loss occurs.
QUARTERLY RESULTS
The following table sets forth certain unaudited operating results of
each of the nine consecutive quarters in the period ended March 31, 1996. This
information is unaudited but, in the opinion of management includes all
adjustments (consisting only of informal recurring adjustments) necessary for
a fair presentation of the results of operations for such periods. This
information should be read in conjunction with the Company's Consolidated
Financial Statements and the Notes thereto.
First Second Third Fourth
quarter quarter quarter quarter
(In thousands, except per share amounts)
Year Ended December 31, 1994
Total revenues .................... $ 6,412 $32,676 $33,961 $ 18,735
Costs of services provided ........ 4,847 11,279 10,629 7,849
Net income (loss) ................. (2,611) 6,909 8,010 1,658
Earnings (loss) per share ......... $ (.16) $ .41 $ .48 $ .10
Year Ended December 31, 1995
Total revenues .................... $ 9,585 $35,963 $35,953 $ 21,515
Costs of services provided ........ 6,288 12,140 11,596 10,141
Net income (loss) ................. (2,704) 7,580 7,603 (2,302)
Earnings (loss) per share$ ........ (.16) $ .49 $ .50 $ (.15)
Year Ended December 31, 1996
Total revenues .................... $ 9,581
Costs of services provided ........ 7,031
Net income (loss) ................. (3,230)
Earnings (loss) per share ....... $ (.22)
Note: Quarterly per share results may not total to the annual earnings per
share due to changes in shares outstanding and the exclusion of common stock
equivalents in the quarterly periods when losses occur. All dollar amounts
except per share amounts are in thousands.
The Company's results of operations fluctuate on a quarterly basis, with
the total revenues and net income significantly higher in the Company's second
and third quarters (ending June 30 and September 30, respectively).
The Company believes that inflation has not had a material effect on the
results of its operations.
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<PAGE>
Liquidity and Capital Resources
General
Barefoot's lawn care business generates significant cash flow during the
treating season generally March through November. Cash built up during this
period is used to fund operations during the seasonally slow quarter ending
March 31 which is also when Barefoot incurs advertising costs for the Spring
marketing campaign. Barefoot also collects advance payments (prepayments) from
approximately 15% of its customers in December through April. The prepayment
receipts are important in financing operations during the winter months and
Spring advertising.
The seasonality of Barefoot's business causes wide variance in the accounts
which comprise working capital. In early Spring prepaid expenses and customer
prepayments are at their peaks. Over the treating season these balances
decline while receivables from customers build. By the end of the calendar
year these balances reach their seasonal lows.
Investment in supplies (fertilizers, pesticides, plants, etc.) is not material
to Barefoot's business. Short lead times for delivery of products allow the
Company to minimize its investment in supplies to just what is needed for the
next week or two. This allows the Company to minimize its investment in
warehouse space.
Cash Flows From Operations
Due to the seasonality of Barefoot's lawn care business the results of
operations for the first quarter were a loss as has been the Company's
experience in the past. For the three months ended March 31, 1996 Barefoot
used nearly $3,250,000 of cash from operations. Cash used by operations in the
three months ended March 31, 1995 was $1,478,000. The normal seasonal factors
discussed above had the most significant impacts on cash used in operations.
Additional factors affecting operating cash flow comparisons between the
periods were -
- - - a lower increase in accounts payable because the 1995 period included
over $2,750,000 for amounts paid in April, 1995 for businesses acquired
on March 31, 1995 and
- - - the utilization of the tax net operating loss carryforwards in the period
ended March 31, 1995 affecting the change in income taxes payable and the
deferred tax provisions between the periods.
Debt, Acquisitions and Capital Expenditures
Currently Barefoot has $2,850,000 of term debt remaining from the acquisition
of Lawnmark on April 1, 1994. The Lawnmark note bears interest at the prime
rate plus 1% subject to a maximum rate of 9%. Principal payments on the note
began June 1, 1995 and are due only during the months of June through
November. Interest is paid monthly.
Capital leases, primarily for lawn service vehicles, are the only other
significant long-term commitment. Near the end of March 1996 approximately
$4,800,000 was added to capital leases for the vehicles at Company locations,
franchises and branchises.
Capital lease payments were $780,000 in the three months ended March 31, 1996
compared to $944,000 in the three months ended March 31, 1995 due to a later
in-service date for 1996 additions to the vehicle fleet as compared to the
prior year.
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<PAGE>
Capital expenditures, other than vehicle leases, are not material to
Barefoot's business.
Barefoot acquired a lawn care business in January, 1996 for a cash payment of
$561,000. In April, 1996 Barefoot acquired the assets of its Richmond, VA
franchise for total consideration (cash and assumed current liabilities) of
approximately $850,000.
In September, 1995 Barefoot increased its $6,000,000 Revolving Credit Facility
to $20,000,000 ("the Facility"). Up to $2,500,000 of the Facility may be used
for letters of credit. Borrowings under the facility bear interest at the
prime rate (8.25% as of April 30, 1996) or at LIBOR (5.4375% as of April 30,
1996) plus 125 basis points. The line of credit is for a three-year period. At
the end of the three year term, borrowings made for nonseasonal purchases may
be converted to a five-year term loan.
The Facility requires approval of acquisitions of businesses for amounts in
excess of $15,000,000 of cash and debt or $25,000,000 of Barefoot Common Stock
and subordinated debt. The Facility's covenants also limit annual capital
expenditures to $7,500,000 and require maintenance of consolidated net worth
of at least $25,000,000. Barefoot believes compliance with the restrictions
contained in the Facility will not hinder its operations or its ability to
acquire lawn care businesses to pay dividends or to repurchase shares of its
stock. Barefoot's positive cash flows since the October, 1991 initial public
offering has reduced its reliance on short-term borrowings. No amounts, other
than letters of credit for insurance contracts, were borrowed on the revolving
line of credit in the current or prior year periods.
Dividends and Share Repurchases
On March 15, 1996 the Company paid a $.05 per share dividend. On April 23,
1996 the Company declared a $.05 per share dividend payable on June 14, 1996
to shareholders of record on May 31, 1996.
Between April and December 1995 the Company repurchased 1,921,000 shares of
its Common Stock for a total cost of $22,801,634. In March, 1996 an additional
261,000 shares were repurchased at a cost of $3,033,250.
The Company is authorized to repurchase up to 818,000 additional shares of its
outstanding Common Stock. The Company will continue to evaluate its cash
position, borrowing capacity, acquisition opportunities and market valuation
in determining if it will acquire any or all of the shares authorized.
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Reports on Form 8-K
None
(b) Exhibits
11 Computation of Earnings per Common and Common Equivalent Share
27 Financial Data Schedule
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<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 hereunto duly authorized.
BAREFOOT INC.
/s/ Michael R. Goodrich
_________________________________
Chief Financial Officer and
Authorized Signing Officer
May 10, 1996
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<PAGE>
EXHIBIT INDEX
Exhibit Number Description Page #
_______________________________________________________________________________
11 Computation of Earnings per Common and 17
Common Equivalent Share
27 Financial Data Schedule 18
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EXHIBIT 11
BAREFOOT INC.
COMPUTATION OF EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
THREE MONTHS ENDED MARCH 31,
1996 1995
----------------------------
Net loss ................................... $ (3,229,556) $ (2,703,742)
SHARES-PRIMARY:
Weighted average number
of shares outstanding during
the period ............................. 14,774,375 16,672,307
Shares issuable upon the
exercise of stock options
and warrants less shares
repurchasable from the proceeds ........ -* -*
Common and common
equivalent shares outstanding ......... 14,774,375 16,672,307
- - -------------------------------------------- ------------ ------------
NET LOSS PER SHARE, PRIMARY ................ $ (.22) $ (.16)
------------ ------------
* Not included in loss periods due to anti-dilutive effect on per share loss
-17-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 2,374
<SECURITIES> 1,550
<RECEIVABLES> 12,569
<ALLOWANCES> 1,601
<INVENTORY> 1,531
<CURRENT-ASSETS> 25,578
<PP&E> 32,005
<DEPRECIATION> 17,581
<TOTAL-ASSETS> 71,016
<CURRENT-LIABILITIES> 27,411
<BONDS> 0
0
0
<COMMON> 168
<OTHER-SE> 31,982
<TOTAL-LIABILITY-AND-EQUITY> 71,016
<SALES> 0
<TOTAL-REVENUES> 9,581
<CGS> 0
<TOTAL-COSTS> 14,760
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 246
<INCOME-PRETAX> (5,314)
<INCOME-TAX> (2,084)
<INCOME-CONTINUING> (3,230)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,230)
<EPS-PRIMARY> (.22)
<EPS-DILUTED> (.22)
</TABLE>
