-----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, LNzgdq7UF97uIBn5xTHwfPethJYJbfiEmLl43IuT8bXcZrq1nrnwxJDAa89djg9V k591e9JV1vFepmZ1NXxLPQ== 0000950147-03-000521.txt : 20030424 0000950147-03-000521.hdr.sgml : 20030424 20030424120213 ACCESSION NUMBER: 0000950147-03-000521 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030424 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: POORE BROTHERS INC CENTRAL INDEX KEY: 0000944508 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS FOOD PREPARATIONS & KINDRED PRODUCTS [2090] IRS NUMBER: 860786101 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14556 FILM NUMBER: 03661575 BUSINESS ADDRESS: STREET 1: 3500 S LA COMETA DR CITY: GOODYEAR STATE: AZ ZIP: 85338 BUSINESS PHONE: 6029326200 MAIL ADDRESS: STREET 1: 2664 SOUTH LITCHFIELD RD CITY: GOODYEAR STATE: AZ ZIP: 85338 8-K 1 e-9894.txt CURRENT REPORT DATED 4/24/2003 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 April 24, 2003 Date of Report (Date of earliest event reported) POORE BROTHERS, INC. (Exact name of registrant as specified in its charter) DELAWARE 1-14556 86-0786101 (State or other jurisdiction (Commission File Number) (I.R.S. Employer of incorporation) Identification No.) 3500 South La Cometa Drive Goodyear, Arizona 85338 (Address of principal executive offices) (zip code) (623) 932-6200 (Registrant's telephone number, including area code) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits 99.1 Press Release of Poore Brothers, Inc., dated April 24, 2003. ITEM 9. REGULATION FD DISCLOSURE The information included in this section is intended to be included in "Item 12. Disclosure of Results of Operations and Financial Condition" and is included under this Item 9 in accordance with SEC Release No. 33-8216. On Thursday, April 24, 2003, the Registrant issued a press release (attached hereto as Exhibit 99.1 and which is incorporated by reference herein) announcing its first quarter earnings for the fiscal quarter ended March 29, 2003. 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. Date: April 24, 2003 POORE BROTHERS, INC. By: /s/ Thomas W. Freeze ------------------------------------ Thomas W. Freeze Senior Vice President & Chief Financial Officer EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION - -------------- ----------- 99.1 Press Release, dated April 24, 2003 EX-99.1 3 ex99-1.txt PRESS RELEASE DATED 4/24/2003 EXHIBIT 99.1 CONTACTS: Thomas W. Freeze, Sr. VP and CFO Philip Bourdillon/Eugene Heller Poore Brothers, Inc. Silverman Heller Associates 623-932-6203 310-208-2550 POORE BROTHERS REPORTS FIRST-QUARTER RESULTS INITIAL SHIPMENTS OF CRUNCH TOONS(TM) BRAND TO BEGIN IN JUNE 2003 Goodyear, Arizona (April 24, 2003) - Poore Brothers, Inc. (Nasdaq: SNAK) today reported financial results for the first quarter ended March 29, 2003. For the first quarter of 2003, net revenues reached $15.2 million, an increase of 7% compared to first quarter 2002 net revenues of $14.3 million. The Company's revenue increase was driven by strong growth of T.G.I. FRIDAY'S(R) brand salted snacks in the vending and convenience store channels, partially offset by fewer large-scale promotional events in the grocery channel. T.G.I. FRIDAY'S(R) brand salted snacks revenue grew 16%, accounting for approximately 63% of the Company's net revenues in the quarter, and was partially offset by lower revenue from TATO SKINS(R) brand snacks in the vending channel. Revenue from the Company's potato chip brands and distributed products rose modestly. Pre-tax income in the first quarter of 2003 rose to $486,006, an increase of 22%, from $398,024 in the prior year quarter, despite approximately $200,000 in spending on manufacturing tests and marketing-related activities associated with the upcoming launch of the Company's CRUNCH TOONS(TM) brand snacks. Net income for the first quarter of 2003 was $303,006, or $0.02 per basic and diluted share, a decrease from $380,024, or $0.02 per basic and diluted share, in the same quarter of 2002 due to the impact of recording federal income tax expense in 2003, but not in the comparable quarter of 2002. Gross profit rose to $3.0 million, an increase of 20%, compared to $2.5 million in the first quarter of 2002. Gross profit margin improved to 19.9% in 2003 versus 17.6% in 2002 due principally to lower overall trade promotion spending reflected in net revenue, offset by higher transportation expense due to rising fuel costs. Manufacturing efficiencies improved modestly, however the benefits were mostly offset by costs from the CRUNCH TOONS(TM) manufacturing tests mentioned previously. Operating costs increased to $2.5 million, up from $2.0 million in 2002, due primarily to marketing-related expenses associated with the upcoming launch of CRUNCH TOONS(TM) brand snacks and increased payroll and benefit costs. Interest expense decreased in the first quarter of 2003 by over 50% from the comparable period in 2002 due to lower long-term debt borrowings. Mr. Eric J. Kufel, president and chief executive officer, stated, "We are pleased with our first-quarter financial performance. Our strategic focus on building a portfolio of innovative national snack food brands, such as T.G.I. FRIDAY'S(R) brand salted snacks, has allowed us to continue investing in building an organization and infrastructure capable of sustaining long-term revenue and profit growth. We are both pleased with our past performance and excited about our future growth potential as we prepare to launch a diverse portfolio of unique new brands in 2003 and beyond. In particular, we are excited about the enthusiastic feedback we have received from several major national retailers regarding CRUNCH TOONS(TM) and we are looking forward to its launch this summer." As previously announced, the Company plans to commence the national launch of its CRUNCH TOONS(TM) brand salted snacks, initially featuring the LOONEY TUNES(TM) characters, with initial shipments expected to begin in June 2003. The new brand utilizes innovative new product manufacturing technology to create snacks with remarkable three-dimensional resolution. Along with the innovative new snacks, the Company has developed interactive packaging with on-pack games and tattoos that will appeal to kids. Mr. Thomas W. Freeze, senior vice president and chief financial officer, commented, "We are a growing national snack food marketer with a strategic platform poised to generate revenue growth in 2003 and beyond. In 2003, our goal is to successfully launch the CRUNCH TOONS(TM) brand into all key trade channels nationwide. We plan to support the launch by investing heavily in introductory consumer and trade marketing programs, including first-ever national television advertising, to generate consumer trial and build equity in the company-owned CRUNCH TOONS(TM) brand name. These introductory programs will commence in the second half of the year, with most occurring in the fourth quarter. These investments will adversely affect profitability in the quarters in which they occur; however, we expect profitability to improve substantially in 2004." ABOUT POORE BROTHERS, INC. With facilities in Indiana and Arizona, Poore Brothers is a marketer and manufacturer of INTENSELY DIFFERENT(TM) salted snack foods under a variety of owned or licensed brand names, including CRUNCH TOONS(TM), T.G.I. FRIDAY'S(R), TATO SKINS(R), POORE BROTHERS(R), BOB'S TEXAS STYLE(R), and BOULDER POTATO COMPANY(R). Further information is available at http://www.poorebrothers.com. STATEMENTS CONTAINED IN THIS PRESS RELEASE THAT ARE NOT HISTORICAL FACTS ARE "FORWARD LOOKING" STATEMENTS AS THAT TERM IS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. BECAUSE SUCH STATEMENTS INCLUDE RISKS AND UNCERTAINTIES, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER FROM THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE AND THAT MAY AFFECT THE COMPANY'S PROSPECTS IN GENERAL INCLUDE, BUT ARE NOT LIMITED TO, THE POTENTIAL NEED FOR ADDITIONAL FINANCING, ACQUISITION-RELATED RISKS, SIGNIFICANT COMPETITION, CUSTOMER ACCEPTANCE OF EXISTING AND FUTURE PRODUCTS, DEPENDENCE UPON MAJOR CUSTOMERS, DEPENDENCE UPON EXISTING AND FUTURE LICENSE AGREEMENTS, GENERAL RISKS RELATED TO THE FOOD PRODUCTS INDUSTRY, AND SUCH OTHER FACTORS AS ARE DESCRIBED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. LOONEY TUNES, characters, names and all related indicia are trademarks of and(C)Warner Bros. (s03) POORE BROTHERS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME QUARTER ENDED ----------------------------- MARCH 29, MARCH 30, 2003 2002 ------------ ------------ (unaudited) (unaudited) Net revenue $ 15,217,683 $ 14,277,520 Cost of revenue 12,186,603 11,760,688 ------------ ------------ Gross profit 3,031,080 2,516,832 Selling, general & administrative expenses 2,473,446 1,964,924 ------------ ------------ Operating income 557,634 551,908 Interest expense, net (71,628) (153,884) ------------ ------------ Income before income tax provision 486,006 398,024 Income tax provision (183,000) (18,000) ------------ ------------ Net Income $ 303,006 $ 380,024 ============ ============ EARNINGS PER COMMON SHARE: Basic $ 0.02 $ 0.02 ============ ============ Diluted $ 0.02 $ 0.02 ============ ============ WEIGHTED AVERAGE NUMBER OF COMMON SHARES: Basic 16,730,642 15,692,387 ============ ============ Diluted 18,025,514 17,439,210 ============ ============ POORE BROTHERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS MARCH 29, DEC. 28, 2003 2002 ----------- ----------- Current assets $ 9,766,366 $ 8,808,726 Property and equipment, net 13,135,985 13,009,948 Other assets, net 9,929,003 9,937,952 ----------- ----------- Total assets $32,831,354 $31,756,626 =========== =========== Current liabilities $ 7,753,994 $ 6,848,755 Long-term debt 3,869,251 4,105,118 Deferred tax liability 80,512 80,512 ----------- ----------- Total liabilities 11,703,757 11,034,385 Shareholders' equity 21,127,597 20,722,241 ----------- ----------- Total liabilities and shareholders' equity $32,831,354 $31,756,626 =========== =========== -----END PRIVACY-ENHANCED MESSAGE-----