-----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, GwMeEeYJJ2GF5qFjX58icrNlI0V6cP9b5Y0O+/t+41GOnXLBrHbb84OXPKJSh6b+ px+IDJRzJzEXa1U+RaJbdg== 0000950147-99-000420.txt : 19990506 0000950147-99-000420.hdr.sgml : 19990506 ACCESSION NUMBER: 0000950147-99-000420 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990503 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990505 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: 99610749 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 CURRENT REPORT DATED 5/3/99 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 May 3, 1999 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. Employe of incorporation) Identification No.) 3500 South La Cometa Drive Goodyear, Arizona 85338 (Address of principal executive offices)(zip code) (602) 932-6200 (Registrant's telephone number, including area code) ITEM 5. OTHER EVENTS On May 3, 1999, the Registrant issued a press release regarding the signing of a letter of intent to acquire Wabash Foods, LLC for 4.0 million shares of common stock and assumption of debt. The Registrant simultaneously signed a management contract pursuant to which the Registrant will manage the operations of Wabash Foods pending completion of the acquisition. The Registrant will receive a management fee for such services. Completion of the acquisition is subject to the signing of a definitive purchase agreement, approval by the Registrant's Board of Directors, and approval by the Registrant's shareholders. The acquisition is expected to close in the third quarter. A copy of the press release is 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 of Poore Brothers, Inc. dated May 3, 1999. 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: May 5, 1999 By: /s/ Thomas W. Freeze ------------------------------------------ Thomas W. Freeze Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 99.1 Press Release of Poore Brothers, Inc. dated May 3, 1999 EX-99.1 2 PRESS RELEASE DATED MAY 3, 1999 EXHIBIT 99.1 POORE BROTHERS SIGNS LETTER OF INTENT TO ACQUIRE FORMER KEEBLER SNACK BRANDS May 3, 1999 -- Poore Brothers, Inc. (Nasdaq: POOR) announced today that it has signed a letter of intent to acquire Wabash Foods, LLC for 4.0 million shares of common stock and assumption of debt. The Company simultaneously signed a management contract pursuant to which Poore Brothers will manage the operations of Wabash Foods pending completion of the acquisition. Poore Brothers will receive a management fee for such services. Completion of the acquisition is subject to the signing of a definitive purchase agreement, approval by Poore Brothers' Board of Directors, and approval by Poore Brothers' shareholders. The acquisition is expected to close in the third quarter. Mr. Eric J. Kufel, President and CEO, stated "The acquisition of Wabash Foods is a very positive financial and strategic action for Poore Brothers and its shareholders. In addition to acquiring a profitable, growing business that is currently generating over $12.0 million in annualized revenues, the acquisition will result in diversification of Poore Brothers' lineup of unique, consumer preferred snack brands and will provide Poore Brothers access to Wabash Foods' national vending distribution network." "The management contract fees, coupled with expected strong revenue growth from Poore Brothers base business, should positively impact Company operating results beginning in the second quarter. Upon completion of the acquisition, Poore Brothers is projected to generate approximately $30.0 million in annualized net sales and achieve profitability in the near future." Wabash Foods produces and markets former Keebler Company owned salted snack brands, including O'Boisies(R), Tato Skins(R), Pizzarias(R), Ripplins(R), Cha Chos(R), Braids(R) and Knots(R), at its Bluffton, Indiana manufacturing facility. Upon completion of the acquisition, the Company will possess potato chip, potato crisp, tortilla chip and pretzel manufacturing capabilities. Mr. Thomas W. Freeze, Poore Brothers Chief Financial Officer, commented, "It is especially encouraging that Wabash Foods is profitable while operating at approximately 15% of capacity. Upon completion of the acquisition, the Company will be well positioned to grow its mid-western business by executing additional strategic acquisitions and implementing base business growth programs that leverage the Company's Bluffton, Indiana manufacturing capabilities." "Since its inception in April 1998, Wabash Foods has done a tremendous job re-building the former Keebler owned salted snack brands into major players in the vending distribution channel and paving the way to grow the brands in the retail and mass merchandiser channels. Currently, over 80% of Wabash Foods net sales are derived from vending channel revenues, which are sold through Wabash's national broker network." "Wabash's success in the vending channel is a direct result of the uniqueness and consumer acceptance of the former Keebler product lines. Keebler supported these businesses with television advertising for over a decade, creating strong brand awareness. Wabash intelligently capitalized on the equity of these brands by launching the products into the vending channel, which has resulted in mass product acceptance. Wabash's sales currently approximate 40,000,000 bags a year into the vending channel. This strong consumer acceptance now needs to be translated into increased grocery distribution, which is Poore Brother's strength." "The synergies from this acquisition include leveraging the Poore Brothers(R) and Bob's Texas Style(R) brand products into Wabash Foods vending distribution channel and conversely selling the Wabash Foods brands into Poore Brothers' retail sales and distributor network. The Company also plans to leverage Wabash Foods unique manufacturing capability to develop and launch innovative new products." Poore Brothers also announced that upon completion of the acquisition, Mr. Larry R. Polhill is expected to join Poore Brothers' Board of Directors. Mr. Polhill is President of American Pacific Financial Corporation, an asset management firm based in San Bernardino, California, with investments in over 20 companies. The companies include Pate Foods Corporation, an Illinois based manufacturer of salted snack products and Pate's Bakery, LLC, a manufacturer of cookies and crackers. Wabash Foods is a wholly owned subsidiary of Pate Foods Corporation. Mr. Polhill is currently a director of several privately owned companies and functions in numerous other director and advisory roles. "We are extremely pleased to be adding an executive of Mr. Polhill's caliber to the Company's Board of Directors. He adds to Poore Brothers' extensive industry and financial experience, excellent capital resources, and strong relationships with existing and potential major customers." commented Mr. Kufel. Mr. Polhill commented, "This acquisition is an excellent opportunity for shareholders of both companies because it creates an organization with the management talent, manufacturing capabilities, and unique brands necessary to profitably compete long-term in the salted snack category." ************************************ Poore Brothers is a regional salted snack manufacturer, marketer and distributor based in Goodyear, Arizona. The Company's primary emphasis is the manufacture of premium batch-cooked potato chips under the Poore Brothers(R) and Bob's Texas Style(R) brand names. In addition, the Company manufactures private label potato chips for major retailers in Arizona and California and operates a direct store delivery distribution business in Arizona and a merchandising operation in south/central Texas. For further information about Poore Brothers or this release, please contact Thomas W. Freeze, Vice President and Chief Financial Officer, at (602) 932-6200. Certain statements contained herein may be "forward-looking" statements (as such 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 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-----