<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
Commission file number 0-00000
-------
FRIEDMAN'S INC. RETIREMENT SAVINGS PLAN
FRIEDMAN'S INC.
A Delaware Corporation
IRS Employer Identification Number 58-2058362
Four West State Street
Savannah, Georgia 31401
Telephone (912) 233-9333
1
<PAGE> 2
FRIEDMAN'S INC. RETIREMENT SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Page No.
<S> <C>
Audited Financial Statements
Report of Independent Auditors...........................................................................3
Statements of Net Assets Available for Benefits, With Fund Information...................................5
Statements of Changes in Net Assets Available for Benefits, With Fund
Information............................................................................................9
Notes to Financial Statements...........................................................................13
Supplemental Schedules
Schedule of Assets Held for Investment Purposes.........................................................19
Schedule of Reportable Transactions.....................................................................20
Signature .......................................................................................................24
</TABLE>
2
<PAGE> 3
Report of Independent Auditors
The Plan Committee
Friedman's Inc. Retirement Savings Plan
Savannah, Georgia
We have audited the accompanying statements of net assets available for benefits
including the schedule of investments of the Friedman's Inc. Retirement Savings
Plan (the Plan) as of December 31, 1997 and 1996, and the related statements of
changes in net assets available for benefits for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the Plan's net assets available for benefits at December
31, 1997 and 1996, and the changes in its net assets available for benefits for
the years then ended, in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes at December 31, 1997 and reportable transactions for the
year then ended, are presented for the purpose of additional analysis and are
not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income and Security Act
of 1974. The supplemental schedules are the responsibility of the Plan's
3
<PAGE> 4
management. The Fund Information in the statements of net assets available for
benefits and the statements of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for benefits and changes in net assets available for benefits
of each fund. The supplemental schedules and Fund Information have been
subjected to the auditing procedures applied in our audit of the 1997 financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
June 15, 1998
Jacksonville, Florida
4
<PAGE> 5
Friedman's Inc. Retirement Savings Plan
Statement of Net Assets Available for Benefits, With Fund Information
December 31, 1997
<TABLE>
<CAPTION>
EVERGREEN EVERGREEN
TREASURY SHORT FIRST UNION
MONEY INTERMEIDATE ENHANCED FIDELITY
MARKET BOND STOCK MAGELLAN
----------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments:
Mutual funds $1,435,667 $ 18,541 $ 197,498 $404,960
Loans to participants -- -- -- --
----------------------------------------------
1,435,667 18,541 197,498 404,960
Receivable from plan sponsor 10,177 558 7,606 13,494
Contributions receivable:
Participants 23,315 730 3,929 6,446
Employer 8,087 177 999 1,873
----------------------------------------------
31,402 907 4,928 8,319
----------------------------------------------
Total assets 1,477,246 20,006 210,032 426,773
LIABILITIES
Refunds due participants 7,465 10 -- 218
----------------------------------------------
Net assets available for benefits $1,469,781 $ 19,996 $ 210,032 $426,555
==============================================
</TABLE>
5
<PAGE> 6
<TABLE>
<CAPTION>
WEISS, PECK
WEISS, PECK AND GREER WEISS, PECK
AND GREER TOMORROW AND GREER
TOMORROW MEDIUM- TOMORROW LOAN
SHORT-TERM TERM LONG-TERM FUND TOTAL
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 80,769 $ 230,051 $ 47,975 $ -- $2,415,461
-- -- -- 143,055 143,055
- -----------------------------------------------------------------
80,769 230,051 47,975 143,055 2,558,516
267 895 1,273 -- 34,270
860 2,423 1,535 -- 39,238
233 617 424 -- 12,410
- -----------------------------------------------------------------
1,093 3,040 1,959 -- 51,648
- -----------------------------------------------------------------
82,129 233,986 51,207 143,055 2,644,434
-- 502 38 -- 8,233
- -----------------------------------------------------------------
$ 82,129 $ 233,484 $ 51,169 $143,055 $2,636,201
=================================================================
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 7
Friedman's Inc. Retirement Savings Plan
Statement of Net Assets Available for Benefits, With Fund Information
December 31, 1996
<TABLE>
<CAPTION>
EVERGREEN EVERGREEN
TREASURY SHORT FIRST UNION
MONEY INTERMEIDATE ENHANCED FIDELITY
MARKET BOND STOCK MAGELLAN
------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments:
Mutual funds $299,365 $ 7,166 $ 43,924 $ 66,289
Loans to participants -- -- -- --
------------------------------------------------
299,365 7,166 43,924 66,289
Contributions receivable:
Participants 25,606 961 2,690 4,418
Employer 9,436 183 836 1,522
------------------------------------------------
Net assets available for benefits $334,407 $ 8,310 $ 47,450 $ 72,229
================================================
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
WEISS, PECK
WEISS, PECK AND GREER WEISS, PECK
AND GREER TOMORROW AND GREER
TOMORROW MEDIUM- TOMORROW FRIEDMAN'S LOAN
SHORT-TERM TERM LONG-TERM INC. STOCK FUND TOTAL
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 3,753 $ 27,734 $ 16,420 $ 35,814 $ -- $500,465
-- -- -- -- 21,646 21,646
- ------------------------------------------------------------------------
3,753 27,734 16,420 35,814 21,646 522,111
313 1,976 1,331 2,809 -- 40,104
114 604 341 837 -- 13,873
- ------------------------------------------------------------------------
$ 4,180 $ 30,314 $ 18,092 $ 39,460 $ 21,646 $576,088
========================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 9
Friedman's Inc. Retirement Savings Plan
Statement of Changes in Net Assets Available for Benefits, With
Fund Information
Year ended December 31, 1997
<TABLE>
<CAPTION>
EVERGREEN EVERGREEN
TREASURY SHORT FIRST UNION
MONEY INTERMEIDATE ENHANCED FIDELITY
MARKET BOND STOCK MAGELLAN
--------------------------------------------------------
<S> <C> <C> <C> <C>
Additions:
Net appreciation in fair value $ 59,608 $ 1,078 $ 33,519 $ 62,318
Contributions:
Participants 279,520 8,573 34,826 63,222
Employer 95,962 2,246 9,905 19,881
Participant rollovers 933,118 6,168 58,243 128,299
Plan Sponsor 10,177 558 7,606 13,494
--------------------------------------------------------
1,378,385 18,623 144,099 287,214
Deductions:
Distributions to participants 98,479 2,037 4,483 6,281
Loan withdrawals, net 14,204 1,892 19,525 4,898
Administrative expenses 5,979 141 492 845
--------------------------------------------------------
118,662 4,070 24,500 12,024
Interfund transfers (124,349) (2,867) 42,983 79,136
--------------------------------------------------------
Net increase (decrease) in net assets 1,135,374 11,686 162,582 354,326
Net assets available for benefits at
beginning of year 334,407 8,310 47,450 72,229
--------------------------------------------------------
Net assets available for benefits at end
of year $ 1,469,781 $ 19,996 $210,032 $426,555
========================================================
</TABLE>
9
<PAGE> 10
<TABLE>
<CAPTION>
WEISS, PECK
WEISS, PECK AND GREER WEISS, PECK
AND GREER TOMORROW AND GREER
TOMORROW MEDIUM- TOMORROW FRIEDMAN'S LOAN
SHORT-TERM TERM LONG-TERM INC. STOCK FUND TOTAL
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 12,755 $ 32,558 $ 5,957 $ 5,028 $ 1,279 $ 214,100
7,365 22,441 14,028 21,619 -- 451,594
2,047 6,698 4,074 7,611 -- 148,424
21 141,294 3 33,706 -- 1,300,852
267 895 1,273 -- -- 34,270
- -----------------------------------------------------------------------------------
22,455 203,886 25,335 67,964 1,279 2,149,240
-- 1,466 1,143 1,399 -- 115,288
38,103 8,040 967 (2,477) (120,130) (34,978)
201 511 150 498 -- 8,817
- -----------------------------------------------------------------------------------
38,304 10,017 2,260 (580) (120,130) 89,127
93,798 9,301 10,002 (108,004) -- --
- -----------------------------------------------------------------------------------
77,949 203,170 33,077 (39,460) 121,409 2,060,113
4,180 30,314 18,092 39,460 21,646 576,088
- -----------------------------------------------------------------------------------
$ 82,129 $ 233,484 $ 51,169 $ -- $ 143,055 $ 2,636,201
===================================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE> 11
Friedman's Inc. Retirement Savings Plan
Statement of Changes in Net Assets Available for Benefits, With
Fund Information
Year ended December 31, 1996
<TABLE>
<CAPTION>
EVERGREEN EVERGREEN
TREASURY SHORT FIRST UNION
MONEY INTERMEIDATE ENHANCED FIDELITY
MARKET BOND STOCK MAGELLAN
--------------------------------------------------
<S> <C> <C> <C> <C>
Additions:
Net appreciation (depreciation) in fair
value $ 6,559 $ 212 $ 3,941 $ 4,155
Contributions:
Participants 265,001 4,415 25,772 38,214
Employer 92,485 1,215 7,945 13,272
Participant rollovers 25,287 1,171 7,369 21,749
--------------------------------------------------
389,332 7,013 45,027 77,390
Deductions:
Distributions to participants 4,581 -- 125 120
Administrative expenses 4,325 51 300 444
--------------------------------------------------
8,906 51 425 564
Interfund transfers (46,019) 1,348 2,848 (4,597)
--------------------------------------------------
Net increase in net assets 334,407 8,310 47,450 72,229
Net assets available for benefits at
beginning of year -- -- -- --
--------------------------------------------------
Net assets available for benefits at
end of year $ 334,407 $ 8,310 $47,450 $ 72,229
==================================================
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
WEISS, PECK
WEISS, PECK AND GREER WEISS, PECK
AND GREER TOMORROW AND GREER
TOMORROW MEDIUM TOMORROW FRIEDMAN'S LOAN
SHORT-TERM TERM LONG-TERM INC. STOCK FUND TOTAL
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 239 $ 1,629 $ 972 $ (7,206) $ -- $ 10,501
2,529 16,915 8,580 17,339 -- 378,765
868 5,247 2,448 5,006 -- 128,486
-- 7,369 4,099 1,757 -- 68,801
- ----------------------------------------------------------------------------
3,636 31,160 16,099 16,896 -- 586,553
-- -- -- -- 4,826
34 181 132 172 -- 5,639
- ----------------------------------------------------------------------------
34 181 132 172 -- 10,465
578 (665) 2,125 22,736 21,646 --
- ----------------------------------------------------------------------------
4,180 30,314 18,092 39,460 21,646 576,088
-- -- -- -- --
- ----------------------------------------------------------------------------
$ 4,180 $ 30,314 $ 18,092 $ 39,460 $21,646 $576,088
============================================================================
</TABLE>
See Notes to Financial Statements.
12
<PAGE> 13
Friedman's Inc. Retirement Savings Plan
Notes to Financial Statements
December 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accounting records of the Friedman's Inc. Retirement Savings Plan (the Plan)
are maintained on the accrual basis. All securities transactions of the Plan are
recorded as of the trade date.
VALUATION OF INVESTMENTS
Investments in mutual funds are stated at fair values as determined by the Plan
trustee, First Union National Bank, using the unitization method of accounting.
Unit values are generally based upon quoted market prices and are adjusted to
reflect the impact of interest, dividends, realized and unrealized gains/losses,
and fund expenses. The investments in mutual funds and the participants'
ownership in such mutual funds are expressed in unit values which are calculated
daily based on the total market value of the unitized fund. Loans to
participants are carried at their outstanding principal balances plus interest,
which approximates fair value.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities and other additions to or
deductions from net assets. Actual results could differ from those estimates.
RECLASSIFICATION
Certain balances as of December 31, 1996 have been reclassified to conform to
current year financial statement presentation.
2. DESCRIPTION OF THE PLAN
A complete description of Plan provisions including those relating to
contributions, vesting, withdrawals, loans and distributions is disclosed in the
Summary Plan Description and the Plan Document. Copies of these documents are
available from the Friedman's Inc. Benefits Department. The following summary
should be read in conjunction with the aforementioned documents.
13
<PAGE> 14
Friedman's Inc. Retirement Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
GENERAL
The Plan is a defined contribution plan subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA) and covers substantially
all employees of Friedman's Inc. (the Company or the Employer). The plan was
established and became effective January 1, 1996.
INVESTMENT ALTERNATIVES
Participant contributions may be invested in one or more of the following
investment funds: (1) Evergreen Treasury Money Market Fund, consisting of a
mutual fund that invests in short-term U.S. Treasury securities primarily to
assure minimal credit risk; (2) Evergreen Short-Intermediate Bond Fund,
consisting of a mutual fund that invests in government and agency securities
selected primarily to attain high income with capital growth as a secondary
objective; (3) First Union Enhanced Stock Fund, consisting of a collective trust
fund which invests in common stocks and S&P 500 futures contracts selected
primarily to duplicate the return of the general market as measured by the S&P
500; (4) Fidelity Magellan Fund, consisting of a mutual fund that invests in
equity securities of domestic, foreign and multinational issuers for long-term
growth potential; and (5) Weiss, Peck and Greer Tomorrow Retirement Funds --
Short-Term, Medium-Term, and Long-Term, which are a series of mutual funds which
invest in varying mixes of common stocks and bonds selected for long-term
capital appreciation.
CONTRIBUTIONS
Participants are allowed to make contributions to the Plan in accordance with
Section 401(k) of the Internal Revenue Code ranging from 1% to 15% of their
pre-tax compensation, as defined in the Plan document, up to a maximum of $9,500
for 1997. Except for rollover contributions, participants may not make
additional contributions from after-tax salary. In addition, the Company makes
matching contributions on behalf of each participant equal to 50% of the first
4% of each participant's contribution to the Plan.
14
<PAGE> 15
2. DESCRIPTION OF THE PLAN (CONTINUED)
VESTING, WITHDRAWALS AND DISTRIBUTIONS
Participants are immediately vested in their contributions plus actual earnings
thereon. Vesting in any Employer contributions plus actual earnings thereon is
based on years of continuous service. A participant vests 20% in Employer
contributions after two years of service and an additional 20% each year
thereafter until they are 100% vested after six years of service. Withdrawals
and distributions are controlled in accordance with the provisions of the Plan.
LOANS TO PARTICIPANTS
The minimum amount participants are permitted to borrow under the loan
provisions of the Plan is $1,000. The maximum amount participants are permitted
to borrow under the loan provisions of the Plan is the lesser of $50,000 or 50%
of the participant's vested interest in the Plan. Participants may have only one
loan outstanding which must be repaid within five years unless the loan is for
the purchase of a primary residence, which must be repaid within ten years.
Borrowings are reflected as loans to participants and bear interest at the prime
rate plus 2% in effect at the beginning of the month in which the loan
originated.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contributions, the
appropriate portion of the Employer's contributions and an allocation of Plan
earnings. The benefit to which a participant is entitled is the benefit that can
be provided from the participant's account. Participant contributions and the
related investment income are at all times 100% vested and nonforfeitable.
Participants become vested in Employer contributions and actual earnings thereon
according to the vesting schedule described above.
PLAN TERMINATION
Although it has not expressed any intent to do so, the Employer has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of termination or partial
termination, the total amount in each participant's account will be distributed
to the participant or continue to be held in trust for his or her benefit.
15
<PAGE> 16
3. INVESTMENTS
The Plan's investments are held by First Union National Bank. The investments
are more fully described below:
Evergreen Treasury Money Market Fund: Substantially all of the assets
held in the Evergreen Treasury Money Market Fund are invested in
short-term U.S. Treasury securities with average maturities of less
than 120 days.
Evergreen Short-Intermediate Bond Fund: Substantially all of the assets
held in the Evergreen Short-Intermediate Bond Fund are invested in
fixed income investments consisting of U.S. Government and Agency
securities, corporate bonds, cash equivalents and other instruments
with an average maturity of 5 years or less.
First Union Enhanced Stock Fund: Substantially all of the assets held
in the First Union Enhanced Stock Fund are invested in common stocks or
S&P 500 futures contracts selected primarily to duplicate the return of
the S&P 500.
Fidelity Magellan Fund: Substantially all of the assets held in the
Fidelity Magellan Fund are invested in equity securities of domestic,
foreign and multinational issuers.
Weiss, Peck and Greer Tomorrow Short-Term, Medium-Term, and Long-Term
Retirement Funds: Substantially all of the assets held in the Tomorrow
Retirement Funds are invested in common stocks and bonds with varying
mix proportions which are customized for specific age groups and grow
more conservative over time.
16
<PAGE> 17
3. INVESTMENTS (CONTINUED)
The Plan's investments are held by a trustee and are invested in any of seven
investment options. Investments that represent 5 percent or more of the Plan's
net assets at December 31, 1997 and 1996 are as follows:
<TABLE>
<CAPTION>
1997 1996
---------- ---------
<S> <C> <C>
Investments at fair value as determined by unitization:
Units of registered investment companies:
Evergreen Treasury Money Market Fund, 110,785 and 24,262
units, respectively $1,435,667 $ 299,365
Fidelity Magellan, 3,059 and 631 units, respectively 404,960 66,289
Weiss, Peck and Greer Tomorrow Medium-Term Fund, 23,681
and 3,396 units, respectively 230,051 27,734
Units of collective trust:
First Union Enhanced Stock Fund, 3,544 and 1,047 units,
respectively 197,498 43,924
Units of corporate common stock:
Friedman's Inc. Stock Fund, 0 and 5,990 units, respectively -- 35,814
</TABLE>
Effective October 10, 1997, the Company instructed the trustee of the Plan to
freeze all activity in any investment alternatives which include the Company's
Class A common stock. Such investment alternatives are subject to prior
registration of the Plan interest and the Company's Class A common stock with
the Securities and Exchange Commission, which registration had not, as of
October 10, 1997, been completed. The Company made a recision offer to all
participants who invested in the Company's Class A common stock in November
1997. On November 26, 1997, the Plan sold all investments in the common stock.
In April 1998, the Company offered each participant who invested in the
Company's Class A common stock an amount equal to the return they would have
earned on the best performing investment alternative in the Plan, less any
amounts received from the liquidation of the Company's Class A common stock. The
additional amount was paid by the Company into another investment alternative
offered by the Plan, in accordance with the participant's instruction. The total
amount paid by the Company was $34,271.
17
<PAGE> 18
4. INCOME TAX STATUS
The Internal Revenue Service ruled September 2, 1997 that the Plan qualifies
under Section 401(a) of the Internal Revenue Code (IRC) and, therefore, is not
subject to tax under present income tax law. Once qualified, the Plan is
required to operate in conformity with the IRC to maintain its qualification.
The Plan's Administrative Committee is not aware of any event or series of
events that have occurred that might adversely affect the Plan's qualified
status.
5. PLAN ROLLOVERS
In March 1996, the MS Jewelers Limited Partnership Profit Sharing Plan (the
Profit Sharing Plan) was terminated. Participants of the Profit Sharing Plan
were allowed to rollover their investment balances, as well as any outstanding
participant loans into the Retirement Savings Plan of Friedman's Inc. Rollover
contributions from the Profit Sharing Plan for 1997 and 1996 were approximately
$1,301,000 and $69,000, respectively.
6. YEAR 2000 ISSUE (UNAUDITED)
Friedman's Inc. has developed a plan to modify its internal information
technology to be ready for the year 2000 and has begun converting critical data
processing systems. The project also includes determining whether third party
service providers have reasonable plans in place to become year 2000 compliant.
Friedman's Inc. currently expects the project to be substantially complete by
early 1999 and does not expect this project to have a significant effect on the
Plan's operations.
18
<PAGE> 19
Friedman's Inc. Retirement Savings Plan
Schedule of Assets Held for Investment Purposes
December 31, 1997
Schedule 27a
<TABLE>
<CAPTION>
DESCRIPTION OF
INVESTMENT,
INCLUDING MATURITY
DATE, RATE OF
IDENTITY OF ISSUE, BORROWER, LESSOR, INTEREST, PAR OR CURRENT
OR SIMILAR PARTY MATURITY VALUE COST VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mutual Funds:
Evergreen Treasury Money Market Fund 110,785 units $1,378,088 $1,435,667
Evergreen Short-Intermediate Bond Fund 1,633 units 17,590 18,541
Fidelity Magellan Fund 3,059 units 346,763 404,960
Weiss, Peck and Greer Tomorrow Short-Term
Retirement Fund 7,502 units 71,815 80,769
Weiss, Peck and Greer Tomorrow Medium-Term
Retirement Fund 23,681 units 196,683 230,051
Weiss, Peck and Greer Tomorrow Long-Term
Retirement Fund 5,508 units 41,652 47,975
Collective Trust Fund:
First Union Enhanced Stock Fund 3,544 units 166,653 197,498
---------- ----------
2,219,244 2,415,461
Participant loans 8.25% - 9.00% 143,055 143,055
---------- ----------
$2,362,299 $2,558,516
========== ==========
</TABLE>
19
<PAGE> 20
Friedman's Inc. Retirement Savings Plan
Schedule of Reportable Transactions
Year ended December 31, 1997
Schedule 27d
<TABLE>
<CAPTION>
DESCRIPTION OF TRANSACTION
INCLUDING MATURITY DATE, RATE
IDENTITY OF PARTY OF INTEREST, COLLATERAL, PAR OR PURCHASE SELLING LEASE
INVOLVED MATURITY VALUE PRICE PRICE RENTAL
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Category (i)--Single transactions in excess of 5% of Plan assets:
Evergreen Treasury Money Mutual Fund:
Market Fund 36,820 units $456,493
16,578 units 205,638
5,921 units $73,471
18,374 units 228,312
2,123 units 26,309
2,436 units 30,367
4,275 units 53,585
2,677 units 34,200
3,331 units 42,953
2,340 units 30,210
Friedman's Inc. Stock Fund Corporate Common Stock:
Fund 7,242 units 42,953
<CAPTION>
DESCRIPTION OF TRANSACTION EXPENSES CURRENT VALUE
INCLUDING MATURITY DATE, RATE INCURRED OF ASSET ON
IDENTITY OF PARTY OF INTEREST, COLLATERAL, PAR OR WITH COST OF TRANSACTION NET GAIN
INVOLVED MATURITY VALUE TRANSACTION ASSET DATE (LOSS)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category (i)--Single transactions in excess of 5% of Plan assets:
Evergreen Treasury Money Mutual Fund:
Market Fund 36,820 units $456,493 $456,493
16,578 units 205,638 205,638
5,921 units 73,375 73,471 $ 96
18,374 units 228,312 228,312
2,123 units 26,309 26,309
2,436 units 30,367 30,367
4,275 units 52,947 53,585 638
2,677 units 34,200 34,200
3,331 units 42,953 42,953
2,340 units 30,210 30,210
Friedman's Inc. Stock Fund Corporate Common Stock:
Fund 7,242 units 46,212 42,953 (3,259)
</TABLE>
20
<PAGE> 21
Friedman's Inc. Retirement Savings Plan
Schedule of Reportable Transactions (continued)
Year ended December 31, 1997
Schedule 27d
<TABLE>
<CAPTION>
DESCRIPTION OF TRANSACTION
INCLUDING MATURITY DATE, RATE
IDENTITY OF PARTY OF INTEREST, COLLATERAL, PAR OR PURCHASE SELLING LEASE
INVOLVED MATURITY VALUE PRICE PRICE RENTAL
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category (i)--Single transactions in excess
of 5% of Plan assets (con't):
Fidelity Magellan Fund Mutual Fund:
788 units $84,436
246 units 26,418
246 units 26,792
211 units 27,534
Weiss, Peck and Greer Mutual Fund:
Tomorrow Medium-Term 12,199 units 99,996
Retirement Fund 3,703 units 30,313
Weiss, Peck and Greer Mutual Fund:
Tomorrow Short-Term 7,819 units 73,471
Retirement Fund 3,826 units $40,000
First Union Enhanced Collective Trust Fund:
Stock Fund 877 units 37,573
855 units 47,101
503 units 27,534
<CAPTION>
DESCRIPTION OF TRANSACTION EXPENSES CURRENT VALUE
INCLUDING MATURITY DATE, RATE INCURRED OF ASSET ON
IDENTITY OF PARTY OF INTEREST, COLLATERAL, PAR OR WITH COST OF TRANSACTION NET GAIN
INVOLVED MATURITY VALUE TRANSACTION ASSET DATE (LOSS)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category (i)--Single transactions in excess
of 5% of Plan assets (con't):
Fidelity Magellan Fund Mutual Fund:
788 units $84,436 $84,436
246 units 26,418 26,418
246 units 26,792 26,792
211 units 27,534 27,534
Weiss, Peck and Greer Mutual Fund:
Tomorrow Medium-Term 12,199 units 99,996 99,996
Retirement Fund 3,703 units 30,313 30,313
Weiss, Peck and Greer Mutual Fund:
Tomorrow Short-Term 7,819 units 73,471 73,471
Retirement Fund 3,826 units 35,965 40,000 $4,035
First Union Enhanced Collective Trust Fund:
Stock Fund 877 units 37,573 37,573
855 units 47,101 47,101
503 units 26,872 27,534 662
</TABLE>
21
<PAGE> 22
Friedman's Inc. Retirement Savings Plan
Schedule of Reportable Transactions (continued)
Year ended December 31, 1997
Schedule 27d
<TABLE>
<CAPTION>
DESCRIPTION OF TRANSACTION
INCLUDING MATURITY DATE, RATE
IDENTITY OF PARTY OF INTEREST, COLLATERAL, PAR OR PURCHASE SELLING LEASE
INVOLVED MATURITY VALUE PRICE PRICE RENTAL
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category (iii)--Series of transactions in excess
of 5% of Plan assets:
Evergreen Treasury Money Mutual Fund:
Market Fund 116,563 units $1,456,483
30,040 units $379,103
First Union Enhanced Collective Trust Fund:
Stock Fund 4,001 units 195,369
1,504 units 75,313
Fidelity Magellan Fund Mutual Fund:
2,998 units 346,877
570 units 70,525
Friedman's Inc. Stock Corporate Common Stock:
Fund 16,808 units 103,169
22,798 units 144,012
</TABLE>
<TABLE>
<CAPTION>
DESCRIPTION OF TRANSACTION EXPENSES CURRENT VALUE
INCLUDING MATURITY DATE, RATE INCURRED OF ASSET ON
IDENTITY OF PARTY OF INTEREST, COLLATERAL, PAR OR WITH COST OF TRANSACTION NET GAIN
INVOLVED MATURITY VALUE TRANSACTION ASSET DATE (LOSS)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category (iii)--Series of transactions in excess
of 5% of Plan assets:
Evergreen Treasury Money Mutual Fund:
Market Fund 116,563 units $1,456,483 $1,456,483
30,040 units 370,990 379,103 $ 8,113
First Union Enhanced Collective Trust Fund:
Stock Fund 4,001 units 195,369 195,369
1,504 units 63,477 75,313 11,836
Fidelity Magellan Fund Mutual Fund:
2,998 units 346,877 346,877
570 units 59,863 70,525 10,662
Friedman's Inc. Stock Corporate Common Stock:
Fund 16,808 units 103,169 103,169
22,798 units 138,983 144,012 5,029
</TABLE>
22
<PAGE> 23
Friedman's Inc. Retirement Savings Plan
Schedule of Reportable Transactions (continued)
Year ended December 31, 1997
Schedule 27d
<TABLE>
<CAPTION>
DESCRIPTION OF TRANSACTION
INCLUDING MATURITY DATE, RATE
IDENTITY OF PARTY OF INTEREST, COLLATERAL, PAR OR PURCHASE SELLING LEASE
INVOLVED MATURITY VALUE PRICE PRICE RENTAL
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category (iii)--Series of transactions in excess
of 5% of Plan assets (con't):
Evergreen Short - Mutual Fund:
Intermediate Bond Fund 2,037 units $22,156
1,074 units $11,859
Weiss, Peck and Greer Mutual Fund:
Tomorrow Long-term 3,694 units 29,666
Retirement Fund 501 units 4,068
Weiss, Peck and Greer Mutual Fund:
Tomorrow Medium-term 22,300 units 186,945
Retirement Fund 2,015 units 17,186
Weiss, Peck and Greer Mutual Fund:
Tomorrow Short-term 10,944 units 104,469
Retirement Fund 3,848 units 40,209
<CAPTION>
DESCRIPTION OF TRANSACTION EXPENSES CURRENT VALUE
INCLUDING MATURITY DATE, RATE INCURRED OF ASSET ON
IDENTITY OF PARTY OF INTEREST, COLLATERAL, PAR OR WITH COST OF TRANSACTION NET GAIN
INVOLVED MATURITY VALUE TRANSACTION ASSET DATE (LOSS)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category (iii)--Series of transactions in excess
of 5% of Plan assets (con't):
Evergreen Short - Mutual Fund:
Intermediate Bond Fund 2,037 units $22,156 $22,156
1,074 units 11,465 11,859 $ 394
Weiss, Peck and Greer Mutual Fund:
Tomorrow Long-term 3,694 units 29,666 29,666
Retirement Fund 501 units 3,554 4,068 514
Weiss, Peck and Greer Mutual Fund:
Tomorrow Medium-term 22,300 units 186,945 186,945
Retirement Fund 2,015 units 16,455 17,186 731
Weiss, Peck and Greer Mutual Fund:
Tomorrow Short-term 10,944 units 104,469 104,469
Retirement Fund 3,848 units 36,086 40,209 4,123
</TABLE>
There were no category (ii) or (iv) reportable transactions during the year
ended December 31, 1997.
23
<PAGE> 24
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the plan
committee members have duly caused this annual report to be signed on its behalf
by the undersigned hereunto duly authorized.
RETIREMENT SAVINGS PLAN OF FRIEDMAN'S INC.
By: /s/ Victor M. Suglia
-----------------------------------------
Victor M. Suglia
Senior Vice President and Chief Financial
Officer
Date: June 29, 1998
24
