-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OHrG0ayIRx6J5Z14wHlq4DdaYsKXxIlSjpITyi1yDrOw23My+fWdxi5cbq3V5BwO ekiLl+tHnyzWG7Tj7NtjMQ== 0000935836-00-000127.txt : 20000216 0000935836-00-000127.hdr.sgml : 20000216 ACCESSION NUMBER: 0000935836-00-000127 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000215 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: SCHEIB EARL INC CENTRAL INDEX KEY: 0000087196 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AUTOMOTIVE REPAIR, SERVICES & PARKING [7500] IRS NUMBER: 951759002 STATE OF INCORPORATION: DE FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: SC 13D SEC ACT: SEC FILE NUMBER: 005-13862 FILM NUMBER: 545403 BUSINESS ADDRESS: STREET 1: 8737 WILSHIRE BLVD CITY: BEVERLY HILLS STATE: CA ZIP: 90211-2795 BUSINESS PHONE: 3106524880 MAIL ADDRESS: STREET 1: 8737 WILSHIRE BLVD CITY: BEVERLY HILLS STATE: CA ZIP: 90211-2795 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: LAWNDALE CAPITAL MANAGEMENT INC CENTRAL INDEX KEY: 0000929870 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: ONE SAMSOME ST STE 3900 CITY: SAN FRANCISCO STATE: CA ZIP: 94111 BUSINESS PHONE: 4152882330 SC 13D 1 OMB APPROVAL OMB Number:3235-0145 Expires: August 31, 1999 Estimated average burden hours per form 14.90 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. *) Earl Scheib, Inc. (Name of Issuer) Common Stock (Title of Class of Securities) 806398103 (CUSIP Number) Andrew E. Shapiro Lawndale Capital Management, LLC Sansome St., Suite 3900 San Francisco, CA 94104 (415) 288-2330 Christopher J. Rupright, Esq. Shartsis Friese & Ginsburg LLP One Maritime Plaza, 18th Floor San Francisco, CA 94111 (415) 421-6500 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) February 8, 2000 (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box / /. Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent. * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1746 (10-97) CUSIP No. 806398103 13D Page 2 of 10 Pages - --------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON IRS IDENTIFICATION NO. OF ABOVE PERSON Lawndale Capital Management, LLC - --------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /XX/ (b) / / - --------------------------------------------------------------------------- 3 SEC USE ONLY - --------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - --------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) / / - --------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION California - --------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES -0- BENEFICIALLY -------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 241,400 REPORTING -------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH -0- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER 241,400 - --------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 241,400 - --------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / / - --------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.5 - --------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* OO, IA CUSIP No. 806398103 13D Page 3 of 10 Pages - --------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON IRS IDENTIFICATION NO. OF ABOVE PERSON Andrew E. Shapiro - --------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /XX/ (b) / / - --------------------------------------------------------------------------- 3 SEC USE ONLY - --------------------------------------------------------------------------- 4 SOURCE OF FUNDS* AF - --------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) / / - --------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - --------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES -0- BENEFICIALLY -------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 241,400 REPORTING -------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH -0- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER 241,400 - --------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 241,400 - --------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / / - --------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.5 - --------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN CUSIP No. 806398103 13D Page 4 of 10 Pages - --------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON IRS IDENTIFICATION NO. OF ABOVE PERSON Diamond A Partners, L.P. - --------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /XX/ (b) / / - --------------------------------------------------------------------------- 3 SEC USE ONLY - --------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - --------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) / / - --------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION California - --------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES -0- BENEFICIALLY -------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 205,400 REPORTING -------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH -0- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER 205,400 - --------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 205,400 - --------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / / - --------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 4.7 - --------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN CUSIP No. 806398103 13D Page 5 of 10 Pages - --------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON IRS IDENTIFICATION NO. OF ABOVE PERSON Diamond A Investors, L.P. - --------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /XX/ (b) / / - --------------------------------------------------------------------------- 3 SEC USE ONLY - --------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - --------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) / / - --------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION California - --------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES -0- BENEFICIALLY -------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH 36,000 REPORTING -------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH -0- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER 36,000 - --------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 36,000 - --------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / / - --------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.8 - --------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* P CUSIP No. 806398103 13D Page 6 of 10 Pages ITEM 1. SECURITY AND ISSUER. This statement relates to shares of Common Stock (the "Stock") of Earl Scheib, Inc. (the "Issuer"). The principal executive office of the Issuer is located at 8737 Wilshire Blvd., Beverly Hills, CA 90211. ITEM 2. IDENTITY AND BACKGROUND. The persons filing this statement and the persons enumerated in Instruction C of Schedule 13D and, where applicable, their respective places of organization, general partners, directors, executive officers and controlling persons, and the information regarding them, are as follows: (a) Lawndale Capital Management, LLC, a California limited liability company ("LCM"); Diamond A Partners, L.P., a California limited partnership ("DAP"); Diamond A Investors, L.P., a California limited partnership ("DAI"); and Andrew E. Shapiro ("Shapiro") (collectively, the "Filers"). (b) The business address of LCM, DAP, DAI and Shapiro is One Sansome Street, Suite 3900, San Francisco, California 94104. (c) LCM is the investment adviser to and the general partner of DAP and DAI, which are investment limited partnerships. Shapiro is the sole manager of LCM. (d) During the last five years, none of the Filers has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). (e) During the last five years, none of the Filers was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. (f) Shapiro is a citizen of the United States of America. CUSIP No. 806398103 13D Page 7 of 10 Pages ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. The source and amount of funds used in purchasing the Stock were as follows: Purchaser Source of Funds Amount LCM Funds Under Management (1) $850,818.27 DAP Working Capital $723,912.05 DAI Working Capital $126,906.22 (1) Includes funds of DAP and DAI invested in Stock. ITEM 4. PURPOSE OF TRANSACTION. The Filers ("Lawndale") have been and may continue to be in contact with ESH's management, members of ESH's Board of Directors, other significant shareholders, and others regarding alternatives ESH plans to employ to maximize shareholder value including, but not limited to, the improvement and/or sale of under-performing assets, the expansion of ESH's new fleet sales business, better utilization of ESH's paint manufacturing capacity, monetization of ESH's real estate assets, the composition of ESH's Board of Directors, and the buyback of ESH's Stock. Lawndale acquired the Stock solely for investment purposes because they believe that the value of the Stock in the public market does not adequately reflect the potential value of ESH's underlying businesses and assets. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. The beneficial ownership of the Stock by each Filer at the date hereof is reflected on that Filer's cover page. CUSIP No. 806398103 13D Page 8 of 10 Pages The Filers effected the following transactions in the Stock through the Nasdaq National Market System on the dates indicated, and such transactions are the only transactions in the Stock by the Filers since December 8, 1999: Purchase Number Price Name or Sale Date of Shares Per Share DAP P 12/9/99 12,000 3.25 DAI P 12/9/99 2,200 3.25 DAP P 12/10/99 2,200 3.25 DAI P 12/10/99 300 3.25 DAP P 12/13/99 6,500 3.22 DAI P 12/13/99 1,200 3.22 DAP P 12/14/99 2,300 3.25 DAI P 12/14/99 400 3.25 DAP P 12/15/99 3,700 3.223 DAP P 12/15/99 500 3.25 DAI P 12/15/99 700 3.223 DAP P 12/16/99 500 3.25 DAP P 12/17/99 5,800 3.25 DAI P 12/17/99 1,200 3.25 DAP P 12/22/99 12,800 3.0917 DAI P 12/22/99 2,200 3.0917 DAP P 12/23/99 4,800 2.8806 DAI P 12/23/99 800 2.8806 DAP P 12/27/99 7,600 2.9271 DAI P 12/27/99 1,400 2.9271 DAP P 12/28/99 9,400 2.9432 DAI P 12/28/99 1,600 2.9432 DAP P 12/29/99 3,500 2.9747 DAI P 12/29/99 700 2.9747 DAP P 12/30/99 700 2.9375 DAP P 2/7/00 14,700 2.9242 DAI P 2/7/00 2,700 2.9242 DAP P 2/8/00 2,200 3.113 DAI P 2/8/00 400 3.113 DAP P 2/10/00 3,200 3.125 DAI P 2/10/00 500 3.125 ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. LCM is the general partner of DAP and DAI pursuant to limited partnership agreements providing to LCM the authority, among other things, to invest the funds of DAP and DAI in Stock, to vote and dispose of Stock and to file this statement on behalf of DAP and DAI. Pursuant to such limited partnership agreements, the general partner of DAP and DAI is entitled to allocations based on assets under management and realized and unrealized gains. CUSIP No. 806398103 13D Page 9 of 10 Pages ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. A. Agreement Regarding Joint Filing of Statement on Schedule 13D or 13G. SIGNATURES After reasonable inquiry and to the best of my knowledge, I certify that the information set forth in this statement is true, complete and correct. DATED: February 15, 2000 Lawndale Capital Management, LLC Diamond A Partners, L.P. By: Lawndale Capital Management, By: Andrew E. Shapiro, Manager LLC By: Andrew E. Shapiro Manager Diamond A Investors, L.P. By: Lawndale Capital Management, Andrew E. Shapiro LLC By: Andrew E. Shapiro, Manager CUSIP No. 806398103 13D Page 10 of 10 Pages EXHIBIT A AGREEMENT REGARDING JOINT FILING OF STATEMENT ON SCHEDULE 13D OR 13G The undersigned agree to file jointly with the Securities and Exchange Commission (the "SEC") any and all statements on Schedule 13D or Schedule 13G (and any amendments or supplements thereto) required under section 13(d) of the Securities Exchange Act of 1934, as amended, in connection with purchases by the undersigned of the common stock of Earl Scheib, Inc. For that purpose, the undersigned hereby constitute and appoint Lawndale Capital Management, LLC, a California limited liability company, as their true and lawful agent and attorney-in-fact, with full power and authority for and on behalf of the undersigned to prepare or cause to be prepared, sign, file with the SEC and furnish to any other person all certificates, instruments, agreements and documents necessary to comply with section 13(d) and section 16(a) of the Securities Exchange Act of 1934, as amended, in connection with said purchases, and to do and perform every act necessary and proper to be done incident to the exercise of the foregoing power, as fully as the undersigned might or could do if personally present. DATED: February 15, 2000 Lawndale Capital Management, LLC Diamond A Partners, L.P. By: Lawndale Capital Management, By: Andrew E. Shapiro, Manager LLC By: Andrew E. Shapiro Manager Diamond A Investors, L.P. By: Lawndale Capital Management, Andrew E. Shapiro LLC By: Andrew E. Shapiro, Manager CJR\3693\013\1087060.01 -----END PRIVACY-ENHANCED MESSAGE-----