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): January 24, 1997
CHECKERS DRIVE-IN RESTAURANTS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-19649 58-1654960
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
600 Cleveland Street, 8th Floor
Clearwater, Florida 34615
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 813-441-3500
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Item 5. Other Events.
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On January 24, 1997, Checkers Drive-In Restaurants, Inc. (the "Company")
announced that, based upon a preliminary review of results for the 16-week
fiscal fourth quarter ending December 30, 1996, the Company expects a net loss
from operations of approximately $8.8 million. These preliminary results do not
include any possible fourth quarter adjustments for such items as additional
FAS-121 writedowns, restaurant closures, severances and relocations. Soft sales,
accompanied by a further deterioration in restaurant margins, have contributed
to the fourth quarter loss. It is anticipated that final results for the fourth
quarter will be announced on or about March 14, 1997.
As part of new management's program to reduce costs, Checkers today decreased
the number of personnel at its Clearwater corporate and modular manufacturing
locations by approximately 20 percent.
Checkers also announced several management changes. James T. Holder has been
promoted to senior vice president and general counsel. Joe Stein has been
appointed chief financial officer, in addition to his role as executive vice
president and chief administrative officer. Michael T. Welch, vice president of
marketing, has moved into the position of vice president of operations, which
position was vacated by Mike Dew, who left Checkers to pursue other interests.
Checkers also announced that it is continuing to work with CKE Restaurants, Inc.
and other investors regarding their participation in the investment of
approximately $20 million in Checkers through the purchase of Checkers stock in
a previously announced private placement, which is expected to be completed
within the next 30 days. The completion of this transaction is subject to
agreement between all participants on pricing and other significant terms which
have not yet been fully negotiated.
Statements that are not historical facts contained in this report are forward
looking statements that involve risks and uncertainties, and actual results
could vary materially from the descriptions contained herein due to many
factors, including, but not limited to, product demand and market acceptance
risks; the effect of economic conditions; the impact of competitive products and
pricing; the results of financing efforts; the effect of the Company's
accounting policies and other risks detailed in the Company's January 1, 1996,
Form 10-K and other filings with the Securities and Exchange Commission.
Item 7. Financial Statements and Exhibits.
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(a) Financial Statements of Businesses Acquired.
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None.
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(b) Pro Forma Financial Information.
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None.
(c) Exhibits.
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Exhibit
Number Exhibit Description
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99 Press Release of the Registrant dated January 24, 1997.
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SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this Report to be signed on its
behalf by the undersigned thereunto duly authorized.
CHECKERS DRIVE-IN RESTAURANTS, INC.
By: /s/ James T. Holder
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James T. Holder
Senior Vice President and General Counsel
Dated: January 27, 1997
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EXHIBIT INDEX
Exhibit
Number Exhibit Description
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99 Press Release of the Registrant dated January 24, 1997
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EXHIBIT 99
FOR IMMEDIATE RELEASE
CHECKERS ANNOUNCES PRELIMINARY FOURTH QUARTER RESULTS;
WORKFORCE REDUCTION AND MANAGEMENT CHANGES
FOR MORE INFORMATION PLEASE CONTACT:
JAMES T. HOLDER, SENIOR VICE PRESIDENT & GENERAL COUNSEL OR
JAMES N. STEIN, EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE
OFFICER 813-441-3500
CLEARWATER, FL -- JANUARY 24, 1997 -- CHECKERS DRIVE-IN RESTAURANTS, INC.
(NASDAQ:CHKR) today announced that, based upon a preliminary review of results
for the 16-week fiscal fourth quarter ending December 30, 1996, the Company
expects a net loss from operations of approximately $8.8 million. These
preliminary results do not include any possible fourth quarter adjustments for
such items as additional FAS-121 writedowns, restaurant closures, severances and
relocations. Soft sales, accompanied by a further deterioration in restaurant
margins, have contributed to the fourth quarter loss. It is anticipated that
final results for the fourth quarter will be announced on or about March 14,
1997.
As part of new management's program to reduce costs, Checkers today decreased
the number of personnel at its Clearwater corporate and modular manufacturing
locations by approximately 20 percent. Tom Thompson, Checkers' CEO stated, "In
our efforts to move Checkers back on the road to profitability, immediate
measures have to be taken in all areas of the Company to reduce costs and
improve margins."
Checkers also announced several management changes. James T. Holder has been
promoted to senior vice president and general counsel. Joe Stein will become
chief financial officer, in addition to his role as executive vice president and
chief administrative officer. Michael T. Welch, vice president of marketing, has
moved into the position of vice president of operations, which was vacated by
Mike Dew, who left Checkers to pursue other interests.
Checkers also announced today that it is continuing to work with CKE
Restaurants, Inc. and other investors regarding their participation in the
investment of approximately $20 million in Checkers through the purchase of
Checkers stock in a previously announced private placement, which is expected to
be completed within the next 30 days. The completion of this transaction is
subject to agreement between all participants on pricing and other significant
terms which have not yet been fully negotiated.
Rick Fortman, president and chief operating officer, commented, "We have
repositioned the corporate staff to take advantage of the strengths of the
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individuals that will move Checkers forward. Our focus will now be on working
with the regional operations staffs and restaurant managers to improve the
restaurant margins while still delivering the quality and speed of service that
Checkers' customers expect."
Statements that are not historical facts contained in this release are forward
looking statements that involve risks and uncertainties, and actual results
could vary materially from the descriptions contained herein due to many
factors, including, but not limited to, product demand and market acceptance
risks; the effect of economic conditions; the impact of competitive products and
pricing; the results of financing efforts; the effect of the Company's
accounting policies and other risks detailed in the Company's January 1, 1996,
Form 10-K and other filings with the Securities and Exchange Commission.
Checkers Drive-In Restaurants, Inc., along with its franchisees, operates
approximately 500 double drive-thru restaurants primarily located in the
Southeast.
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