-----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, LFt7ugGWqDsKACGzZzCYSiwD32kMMVh/uL7CE2pfa0y9J1snSnjuGx7BZsrJdzpd apD/YfbRHOUZoRhmg7n0/Q== 0000950147-97-000679.txt : 19971003 0000950147-97-000679.hdr.sgml : 19971003 ACCESSION NUMBER: 0000950147-97-000679 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970917 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19971002 SROS: NASD 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: SEC FILE NUMBER: 001-14556 FILM NUMBER: 97689793 BUSINESS ADDRESS: STREET 1: 3500 S LA COMETA DR CITY: GOODYEAR STATE: AZ ZIP: 85338 BUSINESS PHONE: 6029250731 MAIL ADDRESS: STREET 1: 2664 SOUTH LITCHFIELD RD CITY: GOODYEAR STATE: AZ ZIP: 85338 8-K 1 FORM 8-K UNITED STATES 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 September 17, 1997 Date of Report (Date of earliest event reported) POORE BROTHERS, INC. (Exact name of registrant as specified in its charter) 1-14556 DELAWARE 0-21857 86-0786101 (State or other jurisdiction of (Commission File Number) (I.R.S. Employer incorporation) Identification No.) 3500 South La Cometa Drive Goodyear, Arizona 85338 (Address of principal executive office)(zip code) (602) 932-6200 (Registrant's telephone number, including area code) Item 5. Other Events - -------------------- On September 17, 1997, Poore Brothers, Inc. (the "Registrant") announced the consolidation of the Registrant's manufacturing operations into its new 60,000 square foot Goodyear, Arizona facility. As a result of this consolidation, the Registrant is closing its LaVergne, Tennessee manufacturing operation. The consolidation and closure of the Tennessee facility will result in charges of approximately $500,000 and the elimination of about 35 jobs. Substantially all of the charges will be recorded in the quarter ended September 30, 1997. On September 17, 1997, the Registrant issued the press release attached hereto as Exhibit 99.1, which press release is hereby incorporated by reference herein. Item 7. Financial Statements and Exhibits. - ------------------------------------------ (c) Exhibits. 99.1 Press release dated September 17, 1997. 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. POORE BROTHERS, INC. (Registrant) Date: October 2, 1997 By: /s/ Thomas W. Freeze ---------------------- Thomas W. Freeze Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit Number Description 99.1 Press Release dated September 17, 1997 EX-99.1 2 PRESS RELEASE DATED 09/17/97 EXHIBIT 99.1 POORE BROTHERS ANNOUNCES NEW ARIZONA PLANT START-UP AND CONSOLIDATION OF MANUFACTURING OPERATIONS Goodyear, AZ, September 17, 1997 - Poore Brothers, Inc. (NASDAQ: POOR) announced the successful start-up of production at the Company's new 60,000 square foot Goodyear, Arizona manufacturing facility and the consolidation of manufacturing operations in that facility. The Company has recently closed its old Arizona facilities. As a result of this consolidation, the Company will be closing its LaVergne, Tennessee manufacturing operation in late September. The consolidation and closure of the Tennessee facility will result in charges of approximately $500,000 and the elimination of about 35 jobs. Substantially all of the charges will occur in the current quarter. The Company's new Goodyear, Arizona facility was built with the flexibility and capacity to manufacture all Poore Brothers' products, thus eliminating the need and costs associated with operating two smaller manufacturing facilities. Eric J. Kufel, President and CEO, stated, "Our new Arizona operation is substantially more efficient than our previous facilities. The savings associated with operating one facility far outweigh the incremental shipping costs incurred as a result of closing the Tennessee operation. Additionally, recent significant investments in new production and quality assurance equipment will now allow us to provide all customers with enhanced product quality. The Company anticipates achieving gross profit improvements in the fourth quarter of 1997 due to lower manufacturing costs as a result of these actions." The Arizona start-up and the consolidation of operations from the Company's two smaller facilities marks the end of an aggressive six-month restructuring plan by the new management team designed to improve the Company's cost structure and focus the Company on growing its core potato chip business. In addition to construction of the new plant and manufacturing consolidation, management sold the Company's unprofitable Texas distribution business and discontinued several unprofitable non-Poore Brothers product lines from its Arizona distribution business. In total, these moves resulted in the shedding of approximately $5 million in unprofitable revenues, which represented nearly 30% of the Company's 1996 reported sales. Mr. Kufel added, "We are a leaner, more focused organization with a base business that now has the potential to achieve profitable long-term growth. Non-performing businesses have been eliminated and we are now aggressively pursuing new revenue opportunities to replace those unprofitable businesses." Poore Brothers also announced that since the beginning of the year, it has achieved Poore Brothers potato chip distribution in over 600 new stores, primarily in Southern California chains (including Ralphs, Vons, Lucky, Stater Brothers, Hughes and Albertsons) and Colorado chains (including Safeway and Albertsons). Mr Kufel commented, "Although we have very successfully acquired new shelf space for our products, we now need to invest in trial-oriented marketing programs to stimulate strong new account growth. Our ability to invest in marketing programs is directly linked to our ability to generate cost savings." The Company also announced that it had reached a two-year agreement with one of the largest supermarket chains in Southern California, whereby Poore Brothers will be the exclusive manufacturer of their private label potato chips. Additionally, Poore Brothers products were selected recently to be featured in November 1997 on QVC, the TV home-shopping network. Poore Brothers was honored by the network as one of Arizona's best consumer products. QVC reaches over 60 million households across America. Mr. Kufel added, "While 1997 has been a difficult transition year, the Company is now well positioned and capable of achieving profitable long-term growth. Without the unnecessary burden of subsidizing losses from non-strategic operations, we look forward to investing in core business growth." Poore Brothers manufactures batch cooked potato chips and distributes them under the Poore Brothers brand name throughout the western and southern United States. Poore Brothers manufactures and distributes private label potato chips for sale by grocery chains served by its Arizona manufacturing facility, and also distributes throughout Arizona a variety of snack food products manufactured by other companies. For further information about Poore Brothers or this release, please contact Thomas W. Freeze, Vice President and Chief Financial Officer, at (602) 925-0731 (ext. 169). Certain statements contained herein may be "forward-looking" statements (as such term is defined in the Private Securities Litigation 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 could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission. -----END PRIVACY-ENHANCED MESSAGE-----