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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): October 11, 1996
TFC ENTERPRISES, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
1-11121 54-1306895
(Commission File Number) (I.R.S. Employer Identification No.)
5425 Robin Hood Road, Suite 101A 23513
Norfolk, Virginia (Zip Code)
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (757) 858-1400
Page 1 of 7 pages
Exhibit Index on Page 4
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ITEM 5. OTHER EVENTS
A press release regarding the closing of the Company's Southwestern
Regional Service Center and its accounting office dated October 11,
1996-Exhibit 99.10
The exhibits on the accompanying Exhibit Index are filed or
incorporated by reference as part of this Form 8-K and the Exhibit
Index is incorporated herein by reference.
Page 2 of 7 pages
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SIGNATURE
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.
TFC ENTERPRISES. INC.
By: /s/ ROBERT S. RALEY, JR.
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Robert S. Raley, Jr.
Chairman of the Board
Date: October 11, 1996
Page 3 of 7 pages
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION OF EXHIBIT SEQUENTIAL PAGE NO.
- ----------- ---------------------- -------------------
99.10 Press release dated October 11, 1996 5
Page 4 of 7 pages
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EXHIBIT 99.10
CONTACT: Robert S. Raley, Jr. TFC ENTERPRISES, INC.
804-858-4054 NEWS RELEASE
*FOR IMMEDIATE RELEASE*
NORFOLK, VA, October 11, 1996/PRNewswire/ -- TFC Enterprises, Inc. (NASDAQ:
TFCE) today announced the closing of its Southwestern Regional Service Center,
located in Dallas, Texas, effective the first week of November 1996. Receivables
serviced from this service center will be moved to the Company's Norfolk, VA and
Jacksonville, FL service centers. This closing is part of the Company's
previously announced restructuring plan to reduce operating expenses.
The Company estimates, on an annualized basis, the reduction of salaries and
rent associated with the closing of its Southwestern Regional Service Center to
be approximately $3.2 million. This reduction will be offset, in part, by the
salaries and costs associated with hiring additional employees in the Norfolk
and Jacksonville service centers of approximately $1.3 million for a net
reduction of approximately $1.9 million annually.
The Company will continue to maintain a Loan Production Office in the Dallas
area to serve its dealers in the Southwestern region. "We intend to maintain an
active role in the Southwest" says Robert S. Raley, the Company's Chairman and
CEO. The Company has Loan Production offices in San Diego, CA, Norfolk, VA, as
well as Dallas, TX. These strategically located offices enable the Company to
complete on a national level. Additionally, the Company is exploring other
military markets as possible locations for
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future Loan Production offices. "We intend to, once again, become a major force
in providing financing of motor vehicles for members of the US Military," says
Robert S. Raley.
Additionally, the Company announced the closing of its accounting office,
currently located in Manassas, VA, which will be moved to the Company's
Headquarters in Norfolk, VA effective November 30, 1996. While the Company does
not expect this move to have a significant impact on operating expenses, it
will, however, improve operating efficiencies by having the accounting staff
located at its Corporate Headquarters.
Management estimates that expenses associated with the closing of Dallas and
moving of Manassas will be approximately $.6 million in the fourth quarter. It
is anticipated this will be partially offset, in future quarters, by any
revenues realized by the subletting of the Manassas office whose lease expires
January 1999. The Dallas lease expires in March, 1997. Therefore, there will be
no sublease income from this location.
"These moves, combined with previously announced reductions in the executive
staff and eventual withdrawal from the civilian point of sale originations,
substantially completes the Company's restructuring" says Robert S. Raley, the
Company's Chairman and CEO. He added that "this now allows the Company to focus
on increasing business volume with substantially reduced overhead."
TFC Enterprises, Inc., through its wholly-owned subsidiary, The Finance
Company,
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specializes in purchasing and servicing installment sales contracts originated
by automobile and motorcycle dealers. Through First Community Finance, Inc.,
another wholly-owned subsidiary, TFC Enterprises, Inc., is involved in the
direct origination and servicing of small consumer loans. Based in Norfolk, VA,
TFC Enterprises, Inc., through its subsidiaries, also has offices in Dallas, TX,
Jacksonville, FL, San Diego, CA, and throughout Virginia and North Carolina.
