<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) July 14, 1997
-------------
Ellett Brothers, Inc.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
South Carolina 33-61490 57-0957069
- --------------------------------------------------------------------------------
(State or Other (Commission File Number) (I.R.S. Employer
Jurisdiction of Incorporation) Identification)
267 Columbia Avenue, Chapin, South Carolina 29036
- --------------------------------------------------------------------------------
(Address, Including Zip Code of Principal Executive Offices)
(803) 345-3751
- --------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
N/A
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
ITEM 5. OTHER EVENTS.
On July 14, 1997, Ellett Brothers, Inc. (the "Company") announced that
it will close its Safesport Manufacturing Company subsidiary. In connection
therewith, the Company will incur a one-time restructuring charge in the second
quarter.
A July 14, 1997 press release announcing the closing of the subsidiary
is attached hereto as an exhibit and is incorporated by reference herein.
ITEM 7.
(C) EXHIBITS. The exhibit listed in the Exhibit Index is filed as part
of the Current Report on Form 8-K.
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.
ELLETT BROTHERS, INC.
Date: July 16, 1997 By: /S/ RICHARD M. EDDINGER
------------------------
Richard M. Eddinger
Chief Financial Officer
2
<PAGE> 3
EXHIBIT INDEX
SEQUENTIALLY
EXHIBIT NUMBERED PAGE
- ------- -------------
99.1 Press release for Registrant dated July 14, 1997. 5
3
<PAGE> 1
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION, CONTACT:
RICHARD M. EDDINGER
VICE PRESIDENT, FINANCE
(803) 345-3751
ELLETT BROTHERS, INC. ANNOUNCES RESTRUCTURING CHARGE
CHAPIN, South Carolina (July 14, 1997)--Ellett Brothers, Inc. (Nasdaq/NM:ELET)
today announced that the preliminary financial results for the second quarter
show the first signs of improvement in the hunting and shooting sports segment
of its distribution business in ten quarters. However, an evaluation of its
second quarter results has let to a decision to shut down its Safesport
Manufacturing Company subsidiary, which will result in a one-time restructuring
charge for the quarter.
Commenting on the quarter and the charge, Joseph F. Murray, President and CEO,
said, "We continue to be very disappointed with the performance of Safesport. At
the time we acquired it two years ago, we expected that we would be able to
provide some synergy to it and turn around the losses it had been suffering.
Instead, its losses have continued, and our internal projections showed that we
would lose in excess of $1 million after taxes in Safesport this year if we
continued as we have been going. While disappointing, we are shutting Safesport
down and will take a one-time restructuring charge in the second quarter. We are
still gathering information which could affect the amount of the charge, but we
currently expect that it will be between $3.0 million and $3.5 million.
"We expect the effect of this restructuring charge on our balance sheet to be
minimal. While it could reduce our equity by $3.0 million to $4.5 million, we
currently anticipate that the liquidation of Safesport's assets will generate
close to that amount in cash, which we will use to reduce debt.
"We have been concerned about the impact of Safesport on our consolidated
results. With our core distribution business improving in the second quarter
after 2 1/2 years of a slowdown, and with our other subsidiaries exceeding our
profit expectations in the second quarter, we have found ourselves having to
spend more and more time on Safesport, rather than devoting that time in the
profitable, growing parts of our business.
"It appears that second quarter earnings will be $0.01 to $0.03 per share,
before the one-time restructuring charge, as compared to $0.07 per share last
year in the second quarter. However, if we could exclude Safesport from the
second quarter results each year, our EPS have been $0.08 to $0.10 per share for
the second quarter of this year versus $0.07 per share last year. On a year to
date basis, earnings would have increased from $0.17 per share to $0.20 per
share without Safesport, versus a decline from $0.14 to less than $0.11 per
share, prior to the restructuring charge."
Ellett Brothers is a nationwide marketer and supplier of natural outdoor
sporting goods products. Now in its 65th year of business, the Company markets
and distributes a broad line of products and accessories for hunting and
shooting sports, marine, camping, archery, and other related outdoor activities.
4
