UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: November 17, 1999
WILD OATS MARKETS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-21577 84-1100630
(State or other jurisdiction of Commission File Number (I.R.S. Employer
incorporation or organization) Identification Number)
3375 Mitchell Lane
Boulder, Colorado 80301
(Address of principal executive offices, including zip code)
(303) 440-5220
(Registrant's telephone number, including area code)
<PAGE>
TABLE OF CONTENTS
Page
Item 5. Other Events. 1
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits. 1
SIGNATURES 1
2
<PAGE>
Item 5. Other Events
Selected financial data for the Registrant is attached as Exhibit 99.1 to this
Current Report on Form 8-K on November 17, 1999. The attached financial data has
been restated to reflect the pooling-of-interests transaction with Henry's
Marketplace, Inc. on September 27, 1999 for all periods presented.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
Exhibit 99.1 Selected Financial Data of the Registrant.
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, on the 17th day of November, 1999.
Wild Oats Markets, Inc.
By /s/ Mary Beth Lewis
Mary Beth Lewis
Executive Officer and Chief Financial Officer
(Principal Financial and Accounting Officer)
3
WILD OATS MARKETS, INC.
SELECTED FINANCIAL DATA
(In thousands, except per-share amounts)
The following data for the six fiscal quarters ended July 3, 1999 are derived
from the consolidated financial statements of Wild Oats Markets, Inc. The
information set forth below should be read in conjunction with our complete
Supplemental Combined Financial Statements as filed on Form 8-K on September 29,
1999. Certain reclassifications have been made to prior financial statements to
conform with current period presentation.
<TABLE>
<CAPTION>
Statement of Operations:
Fiscal Quarter Ended March 8, 1998 June 27, 1998 September 26, 1998 January 2, 1999
------------------ ------------------ ------------------ -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales $110,972 100.0% $ 119,336 100.0% $ 117,673 100.0% $ 131,902 100.0%
Cost of goods sold and occupancy costs 77,021 69.4% 82,978 69.5% 81,793 69.5% 92,149 69.9%
------------------ ------------------ ------------------ -----------------
Gross profit 33,951 30.6% 36,358 30.5% 35,880 30.5% 39,753 30.1%
Operating expenses:
Direct store expenses 23,169 20.9% 25,122 21.1% 24,070 20.5% 27,176 20.6%
Selling, general and administrative expenses 4,763 4.3% 5,208 4.4% 5,092 4.3% 4,601 3.5%
Pre-opening expenses 548 0.5% 433 0.4% 802 0.7% 1,494 1.1%
Non-recurring expenses 393 0.3%
------------------ ------------------ ------------------ -----------------
Income (loss) from operations 5,471 4.9% 5,202 4.3% 5,916 5.0% 6,482 4.9%
Other expense (income):
Interest expense (income), net (215) -0.2% (44) 0.0% 10 0.0% 19 0.0%
------------------ ------------------ ------------------ -----------------
Income (loss) before income taxes 5,686 5.1% 5,246 4.3% 5,906 5.0% 6,463 4.9%
Income tax expense (benefit) 1,735 1.6% 1,713 1.4% 1,965 1.7% 2,380 1.8%
Net income (loss) before cumulative effect of
------------------ ------------------ ------------------ -----------------
change in accounting principle 3,951 3.5% 3,533 2.9% 3,941 3.3% 4,083 3.1%
Cumulative effect of change in accounting
principle, net of tax
------------------ ------------------ ------------------ -----------------
Net income (loss) 3,951 3.5% 3,533 2.9% 3,941 3.3% 4,083 3.1%
------------------ ------------------ ------------------ ----------
Other comprehensive income:
Foreign currency translation adjustment, net 22 8 (113) 106
------------------ ------------------ ------------------ ----------
Comprehensive income $ 3,973 $ 3,541 $ 3,828 $ 4,189
================== ================== ================== ==========
Basic net income (loss) per common share $ 0.28 $ 0.25 $ 0.27 $ 0.28
================== ================== ================== ==========
Diluted net income (loss) per common share $ 0.27 $ 0.24 $ 0.27 $ 0.27
================== ================== ================== ==========
Average common shares outstanding 14,170 14,397 14,434 14,453
Dilutive effect of stock options 544 491 390 417
------------------ ------------------ ------------------ ----------
Average common shares outstanding assuming
dilution 14,714 14,888 14,824 14,870
================== ================== ================== ==========
Pro forma net income (1) $ 3,466 $ 3,175 $ 3,609 $ 3,761
================== ================== ================== ==========
Pro forma basic net income per common share (1) $ 0.24 $ 0.22 $ 0.25 $ 0.26
================== ================== ================== ==========
Pro forma diluted net income per common
share (1) $ 0.24 $ 0.21 $ 0.24 $ 0.25
================== ================== ================== ==========
Statement of Operations:
Fiscal Quarter Ended April 3, 1999 July 3, 1999
-------------------- --------------------
Sales $ 145,413 100.0% $ 159,921 100.0%
Cost of goods sold and occupancy costs 101,253 69.6% 110,915 69.4%
-------------------- --------------------
Gross profit 44,160 30.4% 49,006 30.6%
Operating expenses:
Direct store expenses 30,818 21.2% 33,783 21.1%
Selling, general and administrative expenses 5,767 4.0% 6,426 4.0%
Pre-opening expenses 663 0.5% 937 0.6%
Non-recurring expenses 10,894 7.5% 0.0
-------------------- --------------------
Income (loss) from operations (3,982) -2.8% 7,860 4.9%
Other expense (income):
Interest expense (income), net 186 0.1% 646 0.4%
-------------------- --------------------
Income (loss) before income taxes (4,168) -2.9% 7,214 4.5%
Income tax expense (benefit) (2,445) -1.7% 2,743 1.7%
Net income (loss) before cumulative effect of -------------------- --------------------
change in accounting principle (1,723) -1.2% 4,471 2.8%
Cumulative effect of change in accounting
principle, net of tax 281 0.2%
-------------------- --------------------
Net income (loss) (2,004) -1.4% 4,471 2.8%
------------ ------------
Other comprehensive income:
Foreign currency translation adjustment, net 166 258
------------ ------------
Comprehensive income $ (1,838) $ 4,729
============ ============
Basic net income (loss) per common share $ (0.14) $ 0.31
============ ============
Diluted net income (loss) per common share $ (0.14) $ 0.30
============ ============
Average common shares outstanding 14,491 14,584
Dilutive effect of stock options 393
------------ ------------
Average common shares outstanding assuming
dilution 14,491 14,977
============ ============
Pro forma net income (1) $ 3,658 $ 3,969
============ ============
Pro forma basic net income per common share (1) $ 0.25 $ 0.27
============ ============
Pro forma diluted net income per common
share (1) $ 0.25 $ 0.27
============ ============
</TABLE>
(1) The pro forma net income and pro forma net income per share reflect the tax
adjustment for the fiscal 1999 merger with Henry's Marketplace, Inc. in a
pooling of interests transaction, which included entities that were
previously not taxable, as if Henry's had filed C corporation tax returns
for all periods presented. For the quarter ended April 3, 1999, the pro
forma net income and pro forma net income per share also exclude
non-recurring expenses and the cumulative effect of change in accounting
principle.
