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Previous: WESTPEAK INVESTMENT ADVISORS LP /CO/, 13F-HR, 2000-02-11 |
Next: SPORTS CLUB CO INC, SC 13G/A, 2000-02-11 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) DECEMBER 3, 1999
THE SPORTS CLUB COMPANY, INC.
Delaware 1-13290 95-4479735
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
11100 Santa Monica Boulevard, Suite 300
Los Angeles, California 90025
(address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (310) 479-5200
(Former name or former address, if changed since last report.) Not applicable
Index of Exhibits on Page 2
Page 1 of 2
<PAGE> 2
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(b) Pro-forma financial information
On December 3, 1999, the Company concluded the sale of its successful Spectrum
Clubs, a group of ten athletic clubs in southern California, to investment group
Brentwood Associates. The pro forma financial information required by Article 11
of Regulation S-X is presented in the attached exhibits. This 8-K/A amends the
8-K filed on December 16, 1999.
o Exhibit 1: Pro forma consolidated balance sheet at
September 30, 1999.
o Exhibit 2: Pro forma consolidated income statement for the
nine months ended September 30, 1999.
o Exhibit 3: Pro forma consolidated income statement for the
twelve months ended December 31, 1998.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed by the undersigned hereunto
duly authorized.
THE SPORTS CLUB COMPANY, INC.
BY: /S/ TIMOTHY O'BRIEN
-----------------------------------
Timothy O'Brien
Chief Financial Officer
FEBRUARY 11, 2000
<PAGE> 1
EXHIBIT 1
THE SPORTS CLUB COMPANY, INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1999
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS As Originally
Reported Adjustments(4) As Adjusted
------------- ------------- -----------
<S> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 55,373 $ 43,222 $ 98,595
Accounts receivable, net of allowance for doubtful accounts 2,239 (288) 1,951
Inventories 1,524 (313) 1,211
Other current assets 788 (65) 723
Due from affiliates 253 -- 253
--------- --------- ---------
Total current assets 60,177 42,556 102,733
Property and equipment, at cost, net of accumulated depreciation and
amortization 146,007 (39,098) 106,909
Equity interest in unconsolidated subsidiary 987 (987) --
Costs in excess of net assets acquired, less accumulated amortization 15,082 (1,081) 14,001
Other assets, at cost, net 8,788 (1,298) 7,490
--------- --------- ---------
$ 231,041 $ 92 $ 231,133
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of notes payable and capitalized
lease obligations $ 4,857 $ (1,350) $ 3,507
Accounts payable 4,325 -- 4,325
Accrued liabilities 5,990 7,091 13,081
Deferred membership revenues 10,429 (1,340) 9,089
--------- --------- ---------
Total current liabilities 25,601 4,401 30,002
Notes payable and capitalized lease obligations,
less current installments 104,346 (3,766) 100,580
Deferred lease obligations 3,155 (1,238) 1,917
Minority interest 600 -- 600
--------- --------- ---------
Total liabilities 133,702 (603) 133,099
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized;
no shares issued or outstanding -- -- --
Common stock, $.01 par value, 40,000,000 shares authorized;
20,896,623 shares issued and outstanding at September 30, 1999 209 -- 209
Additional paid-in capital 102,361 -- 102,361
Retained earnings 10,660 695 11,355
Less: Treasury stock, at cost, 3,194,536 shares at September 30, 1999 (15,891) -- (15,891)
--------- --------- ---------
Total shareholders' equity 97,339 695 98,034
--------- --------- ---------
$ 231,041 $ 92 $ 231,133
========= ========= =========
</TABLE>
See footnotes to pro-forma financial statements
<PAGE> 1
EXHIBIT 2
THE SPORTS CLUB COMPANY, INC.
PRO FORMA CONSOLIDATED INCOME STATEMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
As Originally
Reported Adjustments As Adjusted
------------- ----------- -----------
<S> <C> <C> <C>
Revenues $ 66,701 $(20,417)(1) $ 46,284
Operating expenses:
Direct 46,162 (14,989)(1) 31,173
Selling, general and administrative 6,917 (1,175)(1)&(2) 5,743
Depreciation and amortization 4,717 (1,801)(1) 2,916
Pre-opening expenses 1,602 (674)(1) 928
-------- -------- --------
Total operating expenses 59,398 (18,639) 40,760
-------- -------- --------
Income from operations 7,303 (1,778) 5,525
Other income (expense):
Net interest expense (4,435) 2,892(1)&(3) (1,543)
Minority interests (113) -- (113)
Equity interest in net income of unconsolidated subsidiary 786 (786)(1) --
Non-recurring charge (205) 205(1) --
-------- -------- --------
Income before income taxes and cumulative effect of
change in accounting principle 3,336 533 3,869
Income tax provision 1,434 229(1) 1,663
-------- -------- --------
Income before cumulative effect of change in
accounting principle 1,902 304 2,206
Cumulative effect of change in accounting principle,
net of income tax benefit 899 (679)(1) 220
-------- -------- --------
Net income $ 1,003 $ 983 $ 1,986
======== ======== ========
Income per share before cumulative effect of change in
accounting principle:
Basic $ 0.10 $ 0.12
======== ========
Diluted $ 0.10 $ 0.12
======== ========
Effect of cumulative effect of change in accounting principle:
Basic $ (0.05) $ (0.01)
========= =========
Diluted $ (0.05) $ (0.01)
========= =========
Net income per share:
Basic $ 0.05 $ 0.11
======== ========
Diluted $ 0.05 $ 0.11
======== ========
Weighted average shares outstanding:
Basic 18,251 18,251
======== ========
Diluted 18,431 18,431
======== ========
</TABLE>
See footnotes to pro-forma financial statements
<PAGE> 1
EXHIBIT 3
THE SPORTS CLUB COMPANY, INC.
PRO FORMA CONSOLIDATED INCOME STATEMENT
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
As Originally
Reported Adjustments As Adjusted
------------- ----------- -----------
<S> <C> <C> <C>
Revenues $ 81,923 $(23,979)(1) $ 57,944
Operating expenses:
Direct 56,746 (18,581)(1) 38,165
Selling, general and administrative 8,556 (1,453)(1)&(2) 7,103
Depreciation and amortization 5,282 (1,513)(1) 3,769
-------- -------- --------
Total operating expenses 70,584 (21,547) 49,037
-------- -------- --------
Income from operations 11,339 (2,432) 8,907
Other income (expense):
Net interest expense (1,629) 4,381 2,752
Minority interests (150) -- (150)
Equity interest in net income of unconsolidated subsidiary 880 (880)(1) --
Non-recurring charge (314) -- (314)
-------- -------- --------
Income before income taxes and extraordinary charge 10,126 1,069 11,195
Income tax provision 3,971 419(1) 4,390
-------- -------- --------
Income before extraordinary charge 6,155 650 6,805
Extraordinary charge, net of income tax benefit 2,173 -- 2,173
-------- -------- --------
Net income $ 3,982 $ 650 $ 4,632
======== ======== ========
Income per share before extraordinary charge:
Basic $ 0.33 $ 0.37
======== ========
Diluted $ 0.33 $ 0.37
======== ========
Effect of extraordinary charge:
Basic $ (0.12) $ (0.12)
========= =========
Diluted $ (0.12) $ (0.12)
========= =========
Net income per share:
Basic $ 0.21 $ 0.25
======== ========
Diluted $ 0.21 $ 0.25
======== ========
Weighted average shares outstanding:
Basic 18,603 18,603
======== ========
Diluted 18,829 18,829
======== ========
</TABLE>
See footnotes to pro-forma financial statements
<PAGE> 2
NOTES TO EXHIBITS
(1) Eliminate revenues and expenses of the Spectrum Clubs.
(2) Eliminate selling, general and administrative expenses previously allocated
to the Spectrum Clubs and the effect of the Support Services Agreement with
the new owners of the Spectrum Clubs.
(3) Record the effect of the proceeds from the sale of the Spectrum Clubs on
net interest expense. An assumed interest rate of 5.5% was used for the
calculation.
(4) Adjust the Balance Sheet to record the effect of the sale of the Spectrum
Clubs.
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