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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 and Exchange Act of 1934
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Date of Report (Date of earliest event reported): September 25, 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
Norfolk, Virginia 23513
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (757) 858-1400
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ITEM 5. OTHER EVENTS
A press release regarding the early retirement of certain of the
company's senior executives effective September 30, 1996 -- Exhibit 99.9
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.
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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: September 25, 1996
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EXHIBIT INDEX
Sequential
Exhibit No. Description of Exhibit Page No.
- ----------- ---------------------- -----------
99.9 Press release dated September 25, 1996 5
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EXHIBIT 99.9
CONTACT: ROBERT S. RALEY, JR. TFC ENTERPRISES, INC.
804-858-4054 NEWS RELEASE
* FOR IMMEDIATE RELEASE*
NORFOLK, VA, September 25, 1996/PRNewswire/ -TFC Enterprises, Inc.
(NASDAQ:TFCE) today announced the early retirements, effective September 30,
1996, of the following executives: George Kouri, Chief Executive Officer;
Joseph Becka, Chief Marketing Officer; Preston Gnagey, Chief Operations Officer
and Charles Johnston, Chief Financial Officer - all of whom were under contract
through December 31, 1999. These early retirements were part of the company's
restructuring plans to reduce operating expenses.
In settlement of these contracts, approximately $1.8 million will be expensed
in the 3rd quarter of 1996. This amount represents combined cash payments to be
made to these executives and the cancellation of certain notes receivable from
these executives. The combined base salaries, exclusive of benefits and
bonuses, of the affected executives total approximately $3.65 million over the
remaining 3.25 years of the employment agreements which expire December 31,
1999. Management estimates the cost of benefits over the same period to be
approximately $325,000 for a total estimated pre-tax savings of approximately
$4.0 million on salaries and benefit expense.
Additionally, the company will reduce its obligation for bonus payments to the
Company's executives from approximately 6.0% of pre-tax profits to
approximately 3.5% of pre-tax profits.
R. S. Raley, Jr., the Company's Chairman of the Board, will assume the duties
of Chief Executive Officer. Mr. Raley will also handle the investor and lender
relations functions, formerly performed by the Chief Financial Officer. Mr.
Raley has been employed in the consumer finance business since 1959 and founded
The Finance Company in 1977.
The remainder of the CFO's duties will be assumed by the Company's controller.
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Ron Tray will assume the duties of Chief Operations Officer. Mr. Tray has been
with the Company since 1989 and formerly was President of MTECH's mid-atlantic
region providing computer services to financial institutions.
Rick Lieberman will assume the role of Chief Lending Officer, and be
responsible for credit quality. Mr. Lieberman has been employed by the Company
since 1989.
The Company's day to day marketing responsibilities will be handled by the
Company's existing Loan Production Managers.
"We believe that this major step in the Company's restructuring goes a long way
towards the Company's recovery and return to profitability," says R. S. Raley,
the Company's Chairman and CEO.
He added that "We expect completion of restructuring to occur in the 4th
quarter, 1996 which will put the Company in a strong position to begin 1997."
TFC Enterprises, Inc., through its wholly-owned subsidiary, The Finance
Company, 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. also has offices in Dallas, TX,
Jacksonville, FL, San Diego, CA, and throughout Virginia and North Carolina.
