<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities and Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
December 30, 1996
FAMILY GOLF CENTERS, INC.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 0-25098 11-3223246
---------------- ------------------ ----------------
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) No.)
225 Broadhollow Road
Melville, New York 11747
------------------------------------------
(Address of principal executive offices)
Registrant's Telephone Number, including
area code: (516) 694-1666
---------------------------------------------------------
(Former Address, if changed since last report)
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<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
Item 7 is supplemented by the addition of the following:
(b) Pro Forma Financial Information
In accordance with Item 7(b)(2) of Form 8-K, attached hereto as
Exhibit 1 are the pro forma financial statements required by Article 11 of
Regulation S-X.
(c) Exhibits
1. Unaudited pro forma condensed balance sheet of the Company and
its subsidiaries for the year ended December 31, 1995 and for the nine months
ended September 30, 1996.
-2-
<PAGE>
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 hereunto duly authorized.
February , 1997.
FAMILY GOLF CENTERS, INC.
By: /s/ Dominic Chang
-----------------------------
Dominic Chang,
President and
Chief Executive Officer
-3-
<PAGE>
FAMILY GOLF CENTERS, INC. AND SUBSIDIARIES
PRO FORMA UNAUDITED CONDENSED
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
The following pro forma condensed statements of operations reflect the
acquisitions of the Pelham Enterprises, Inc., Hiland Park Golf Course, RFC
Enterprises, Inc., Upper Hembree Partners, L.P., The Practice Tee, Inc ("TPT"),
Golf Masters Limited Partnership and Air Dome Limited Partnership (collectively,
"Valley View"), Owls' Creek Golf Center, Inc., ("Virginia Beach"), Flemington
Golf and Sports Center, LLC ("Flemington") and associated land, 202 Golf
Associates Inc., ("Yorktown") Indian River Golf-O-Rama, Inc. ("Indian River"),
K.G. Golf, Inc. ("Fairfield"), Catalina Golf Center ("Tucson"), Tree Court
Golf & Recreational Facility, Inc. ("St. Louis"), Golf and Sports Center of
the Palm Beaches, Inc. ("West Palm Beach"), Pin High Golf Center ("San Jose"),
Privatization Plus, Inc. ("Glen Burnie"), Tri-Town Sports, Inc. ("Easton"), KKL
Golf Partnership ("Carolina Springs"), Swingmaster Golf at Centennial, Ltd.
("Denver"), and USA Golf Centers, Ltd. 2 ("Westminster") The Seven Iron, Inc.
("Seven Iron") Margate Partners, Limited Partnership ("Margate"), Cincinnati
Golf Academy, Limited ("Maineville") and Fore Seasons Golf, Inc. ("Milwaukee")
(collectively, the "Acquired Companies") acquired during 1995 and 1996 as if
the Acquired Companies had been acquired on January 1, 1995. The acquisitions
of the Acquired Companies except TPT have been accounted for as purchases in
accordance with Accounting Principles Board Opinion No. 16. Since TPT has been
acquired from related parties, the acquisition has been recorded using
historical basis. In the opinion of management of the Company, all adjustments
necessary to present fairly such pro forma statements of operations have been
made.
These pro forma condensed statements of operations should be read in
conjunction with the notes thereto, the financial statements of the Company
and the Acquired Companies and the related notes thereto, each included
elsewhere in this filing. The pro forma condensed statements of operations are
not necessarily indicative of what the actual results of operations would have
been had the transactions occurred at January 1, 1995, or January 1, 1996 nor do
they purport to indicate the results of future operations.
<PAGE>
FAMILY GOLF CENTERS, INC. AND SUBSIDIARIES
PRO FORMA UNAUDITED CONDENSED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
<TABLE>
<CAPTION>
ACQUIRED COMPANIES
---------------------------------------------
HOLLAND UPPER
PELHAM PARK RFC HEMBREE
THE ENTERPRISES, GOLF ENTERPRISES PARTNERS,
COMPANY INC.(A) COURSE(A) INC.(A) L.P.(A)
------- ------------ ------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Operating revenues $ 9,795 $117 $ 100 $363 $386
Merchandise sales 2,637 150 17
------- ------------ ------- ----------- ---------
Total revenue 12,432 267 117 363 386
------- ------------ ------- ----------- ---------
Operating expenses 6,614 87 297 234 317
Cost of merchandise sold 1,779 111 152
Selling, general and administrative
expenses 1,242 39 44 110 46
------- ------------ ------- ----------- ---------
Operating income (loss) 2,797 30 (376) 19 23
Interest expense 939 16 61 112
Other income (expense) 66 6
------- ------------ ------- ----------- ---------
Income (loss) before income taxes and
extraordinary item 1,924 14 (376) (42) (83)
Income tax expense (benefit) 669
------- ------------ ------- ----------- ---------
INCOME (LOSS) before extraordinary
item $ 1,255 $ 14 $(376) $(42) $(83)
======= ============ ======= =========== =========
Income (loss) per share before
extraordinary item $ 0.24
=======
Weighted average shares outstanding 5,271 90 8 85
=======
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
VALLEY VIRGINIA YORKTOWN
TPT(A) VIEW BEACH(B) FLEMINGTON(B) HEIGHTS(B)
------ ------ -------- ----------- --------
<S> <C> <C> <C> <C> <C>
Operating revenues $ 244 $ 668 $616 $ 501 $ 388
Merchandise sales 44 92
------ ------ -------- ----------- --------
Total revenue 244 712 708 501 388
------ ------ -------- ----------- --------
Operating expenses 86 395 404 900 393
Cost of merchandise sold 36 72
Selling, general and administrative
expenses 264 404 119 101
------ ------ -------- ----------- --------
Operating income (loss) (106) (123) 113 (399) (106)
Interest expense 3 34 192 128 164
Other income (expense) 1 2 (2) (2,448)
------ ------ -------- ----------- --------
Income (loss) before income taxes and
extraordinary item (108) (155) (81) (2,975) (270)
Income tax expense (benefit) 1
------ ------ -------- ----------- --------
INCOME (LOSS) before extraordinary
item $(109) $(155) $(81) $(2,975) $(270)
====== ====== ======== =========== ========
Income (loss) per share before
extraordinary item
Weighted average shares outstanding 50 100
</TABLE>
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(a) Represents operations from January 1, 1995 through date of acquisition.
(b) Represents operations for the year ended December 31, 1995.
<PAGE>
<TABLE>
<CAPTION>
ACQUIRED COMPANIES
-----------------------------------------------------------------------------------
INDIAN WEST SAN JOSE GLEN
RIVER(B) FAIRFIELD(B) TUCSON(B) ST. LOUIS(B) PALM BEACH PIN HIGH BURNIE
-------- ------------ --------- ------------ ------------ ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Operating revenues $510 $ 791 $ 156 $ 443 $ 863 $ 533 $ 310
Merchandise sales 98 195 39
-------- ------------ --------- ------------ ------------ ---------- --------
Total revenue 608 791 156 443 863 728 349
-------- ------------ --------- ------------ ------------ ---------- --------
Operating expenses 607 800 214 544 1,029 53 309
Cost of merchandise sold 72 130 29
Selling, general and administrative
expenses 161 33 589 56
-------- ------------ --------- ------------ ------------ ---------- --------
Operating income (loss) (232) (9) (91) (101) (166) (44) (45)
Interest expense 104 132 77 182 172 71
Other income (expense) 5 (2) 1
-------- ------------ --------- ------------ ------------ ---------- --------
Income (loss) before income taxes and
extraordinary item (232) (113) (218) (180) (348) (216) (115)
Income tax expense (benefit) 1
-------- ------------ --------- ------------ ------------ ---------- --------
INCOME (LOSS) before extraordinary
item $(232) $(113) $(218) $(180) $ (348) $(217) $(115)
======== ============ ========= ============ ============ ========== ========
Income (loss) per share before
extraordinary item
Weighted average shares outstanding 102
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ACQUIRED COMPANIES
--------------------------------------------------------------------------------------
CAROLINA
EASTON SPRINGS DENVER FLANDERS WESTMINSTER SEVEN IRON MARGATE
-------- ---------- -------- ---------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Operating revenues $526 $ 991 $ 73 $461 $600 1,344 $ 349
Merchandise sales 205 386 87
-------- ---------- -------- ---------- ------------- ------------- -----------
Total revenue 526 1,196 73 847 600 1,431 349
-------- ---------- -------- ---------- ------------- ------------- -----------
Operating expenses 302 1,021 179 289 511 1,098 540
Cost of merchandise sold 154 277 69
Selling, general and administrative
expenses 154 84 94 70 117
-------- ---------- -------- ---------- ------------- ------------- -----------
Operating income (loss) 70 21 (190) 187 19 147 (191)
Interest expense 145 196 22 4 4 232
Other income (expense) 97 (363)
-------- ---------- -------- ---------- ------------- ------------- -----------
Income (loss) before income taxes and
extraordinary item (75) (175) (212) 183 15 244 (786)
Income tax expense (benefit) 68
-------- ---------- -------- ---------- ------------- ------------- -----------
INCOME (LOSS) before extraordinary
item $(75) $ (175) $ (212) $183 $ 15 $ 176 $ (786)
======== ========== ======== ========== ============= ============= ===========
Income (loss) per share before
extraordinary item
Weighted average shares outstanding 40 75
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
ACQUIRED COMPANIES
------------------------------------------------
PRO FORMA
MAINEVILLE MILWAUKEE ADJUSTMENTS PRO FORMA
---------- --------- ----------- ----------
<S> <C> <C> <C> <C>
Operating revenues $ 225 $ 482 $21,835
Merchandise sales 3,950
------- ------- ------- -------
Total revenue 225 482 $ 0 25,785
------- ------- ------- -------
Operating expenses 500 669 (184)(A) 18,208
Cost of merchandise sold 2,881
Selling, general and administrative
expenses 13 (A) 3,740
------- ------- ------- -------
Operating income (loss) (275) (187) 171 956
Interest expense 129 364 (A) 3,483
Other income (expense) 25 2,811 (A) 199
------- ------- ------- -------
Income (loss) before income taxes and
extraordinary item (250) (316) 2,618 (2,328)
Income tax expense (benefit) (1,987)(B) (1,248)
------- ------- ------- -------
INCOME (LOSS) before extraordinary
item $ (250) $ (316) $ 4,605 $(1,080)
======= ======= ======= =======
Income (loss) per share before
extraordinary item (0.18)
Weighted average shares outstanding 40 5,861
</TABLE>
<PAGE>
FAMILY GOLF CENTERS, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA UNAUDITED CONDENSED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(A) Expense adjustments for the period ended December 31, 1995 to reflect
the acquisition of the Acquired Companies as if the acquisitions had
taken place at January 1, 1995:
<TABLE>
<CAPTION>
IMPAIRMENT
DATE INTEREST DEPRECIATION AMORTIZATION IN VALUE OF
COMPANY ACQUIRED ADJUSTMENT(1) ADJUSTMENT OF GOODWILL ASSETS OTHER
- ---------------------------- -------------- ------------- -------------- -------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Pelham Enterprises, Inc. April 1995 $ (30) $ 12
Hiland Park Golf Course May 1995 (212) 14
RFC Enterprises, Inc. August 1995 9 (33) $ 8
Upper Hembree Partners, L.P. August 1995 (4) (108)
TPT November 1995 26
Valley View November 1995 (56)
Virginia Beach March 1996 12 22
Flemington March 1996 39 $2,448
Yorktown Heights April 1996 4 5
Indian River MAY 1996 140 (4)
Fairfield June 1996 36 25
Tucson June 1996 (22)
St. Louis June 1996 53 34
West Palm Beach June 1996 (7) (77)
San Jose July 1996 (172) 78
Glen Burnie August 1996 38
Easton July 1996 7 (21)
Carolina Springs August 1996 (127)
Denver August 1996 86
Flanders August 1996 54
Westminster September 1996 (18)
Seven Iron November 1996 433
Margate November 1996 (71) $ 363
Maineville December 1996 45 (75)
Milwaukee December 1996 78 (28)
------------- -------------- -------------- ------------ ------------
364 (184) 13 (2,448) (363)
============= ============== ============== ============ ============
</TABLE>
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(1) Assumes average borrowing at 8%
(B) To reflect the income tax effect arising from the losses of the Acquired
Companies.
(C) To reflect the issuance of Common Stock for the Acquired Companies.
<PAGE>
FAMILY GOLF CENTERS, INC. AND SUBSIDIARIES
PRO FORMA UNAUDITED CONDENSED STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1996
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
<TABLE>
<CAPTION>
ACQUIRED COMPANIES
-----------------------------------------------------------------------
THE VIRGINIA YORKTOWN INDIAN
COMPANY BEACH FLEMINGTON HEIGHTS RIVER TUCSON ST. LOUIS CINCINNATI
---------- -------- ---------- -------- ------ -------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues 16,234 35 74 54 39 164 83
Merchandise Sales 4,634 2 3 102
---------- -------- ---------- -------- ------ -------- --------- ----------
Total revenue 20,858 37 74 57 39 164 185
Operating expenses 9,109 39 25 88 40 11 188 106
Cost of merchandise
sold 3,043 2 3 77
Selling, general and
administrative
expenses 2,149 27 22 8 26 19
---------- -------- ---------- -------- ------ -------- --------- ----------
Operating income 6,567 (31) (25) (36) 6 2 (24) (17)
Interest expense 288 34 26 40 42 33
Other income
(expense) 1,155 (14) 3
---------- -------- ---------- -------- ------ -------- --------- ----------
Income before income
taxes 7,434 (79) (25) (59) 6 (38) (66) (50)
Income tax expense 2,676 0
---------- -------- ---------- -------- ------ -------- --------- ----------
Net income 4,758 (79) (25) (59) 6 (38) (66) (50)
========== ======== ========== ======== ====== ======== ========= ==========
Net income per share 0.48
Weighted average
shares outstanding 9,830 50 100 30
</TABLE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
WEST
PALM GLEN CAROLINA
BEACH PIN HIGH BURNIE EASTON SPRINGS DENVER FLANDERS WESTMINSTER SEVEN IRON MARGATE(D)
------- -------- -------- -------- -------- --------- -------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues 221 294 183 203 668 154 286 311 643
Merchandise Sales 114 30 53 52 206 48
------- -------- -------- -------- -------- --------- -------- ----------- -----------
Total revenue 221 408 213 203 721 206 492 311 691
Operating expenses 191 288 164 194 499 141 200 631
Cost of merchandise
sold 71 23 48 39 146 38
Selling, general and
administrative
expenses 7 33 22 17 87 263 53 13 73
------- -------- -------- -------- -------- --------- -------- ----------- -----------
Operating income 23 16 4 (8) 87 (96) 152 98 (51)
Interest expense 102 36 69 30 4 4 36
Other income
(expense) 1 0 29
------- -------- -------- -------- -------- --------- -------- ----------- -----------
Income before income
taxes 23 (85) (32) (77) 87 (126) 148 94 (58)
Income tax expense
------- -------- -------- -------- -------- --------- -------- ----------- -----------
Net income 23 (85) (32) (77) 87 (126) 148 94 (58)
======= ======== ======== ======== ======== ========= ======== =========== ===========
Net income per share
Weighted average
shares outstanding
</TABLE>
<PAGE>
(RESTUBBED TABLE CONTINUED FROM ABOVE)
<TABLE>
<CAPTION>
PRO FORMA
MAINEVILLE MILWAUKEE ADJUSTMENTS PRO FORMA
---------- --------- ----------- ----------
<S> <C> <C> <C> <C>
Operating Revenues 420 480 20,586
Merchandise Sales 5,244
------- ------- ------- -------
Total revenue 420 480 0 25,830
Operating expenses 292 326 226 (A) 12,758
Cost of merchandise
sold 3,490
Selling, general and
administrative
expenses 79 64 2,962
------- ------- ------- -------
Operating income 49 90 (226) 6,620
Interest expense 125 98 619 (A) 1,586
Other income
(expense) 2 96 (A) 1,272
------- ------- ------- -------
Income before income
taxes (74) (8) 297 6,306
Income tax expense 3 (166)(B) 2,513
------- ------- ------- -------
Net income (74) (11) 277 3,793
======= ======= ======= =======
Net income per share 0.37
Weighted average
shares outstanding 40 261 (C) 10,352
</TABLE>
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(A) Represents operations from January 1, 1996 through date of acquisition.
(B) Represents estimated operations from January 1, 1996 through date of
acquisition.
(C) Represents operations for the three month ended March 31, 1996.
<PAGE>
FAMILY GOLF CENTERS, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA UNAUDITED CONDENSED STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1996
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(A) Expense adjustments for the period ended September 30, 1996 to reflect
the acquisition of the Acquired Companies as if the acquisitions had
taken place at January 1, 1996:
<TABLE>
<CAPTION>
OTHER
INTERST DEPRECIATION (INCOME)
COMPANY DATE ACQUIRED ADJUSTMENT(1) ADJUSTMENT EXPENSE OTHER
- ---------------- -------------- ------------- -------------- --------- -------
<S> <C> <C> <C> <C> <C>
Virginia Beach March 1996 $ 34 $ (9) $15 $14
Flemington March 1996
Yorktown Heights April 1996 26 20
Indian River May 1996 (1) 17
Fairfield June 1996 (11) 6
Tucson June 1996 12
St. Louis June 1996 14 4
West Palm Beach June 1996 20 (19) 9
San Jose July 1996 30 25
Glen Burnie August 1996 17 10
Easton July 1996 12 (46)
Carolina Springs August 1996 (50) 14
Denver August 1996 60 7
Flanders August 1996 32 13
Westminster September 1996 11 67
Seven Iron November 1996 348 220
Maineville December 1996 45 (75)
Milwaukee December 1996 78 (28)
------------- -------------- --------- -------- --------
$364 $(184) $13 $(2,448) $(363)
============= ============== ========= ======== ========
</TABLE>
- ------------
(1) Assumes average borrowing at 8%.
(B) To reflect the income tax effect arising from the losses of the Acquired
Companies.
(C) To reflect the issuance of Common Stock for the Acquired Companies.
(D) The operations of Margate are immaterial due to the fact that it was
closed for substantially the whole period.
