SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): September 3, 2002
THE KRYSTAL COMPANY
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(Exact name of registrant as specified in its charter)
Tennessee 000-20040 62-0264140
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(State of (Commission File No.) (IRS Employer
incorporation) Identification No.)
One Union Square, Chattanooga, Tennessee 37402
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(Address of principal executive offices, including zip code)
(423) 757-1550
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(Registrant's telephone number, including area code)
Item 5. Other Events and Regulation FD Disclosure.
On September 3, 2002, The Krystal Company (the "Company") announced that
it had entered into a letter of intent with Truman Arnold Companies for the
purchase and sale of substantially all of the assets of the Company's fixed
based operation at Lovell Field.
Item 7. Financial Statements and Exhibits.
(a) Not Applicable
(b) Not Applicable
(c) Exhibits
No. Description
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99 Press Release of the Company dated September 3, 2002.
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.
September 4, 2002 THE KRYSTAL COMPANY
By: /s/Larry D. Bentley
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Larry D. Bentley
Vice President and
Chief Financial Officer
EXHIBIT 99
Press Release Dated September 3, 2002
NEWS RELEASE
For Immediate Release
Krystal Agrees To Sell Aviation Subsidiary to TAC Air
Chattanooga, TN (September 3, 2002) /BusinessWire/ -- The Krystal Company and
TAC Air announced today an agreement in principle whereby Krystal will sell
its Krystal Aviation subsidiary to TAC Air for an undisclosed sum. TAC Air,
based in Texarkana, TX, operates nine fixed-base operations (FBO) aviation
facilities throughout the United States.
According to Phil Sanford, Krystal chairman and chief executive officer,
"This transaction allows Krystal to better deploy its assets and management
resources into our core business of operating and franchising Krystal
restaurants. TAC Air already operates nine other FBO businesses and is very
well respected in this industry. We are proud to bring an organization as
well respected and well run as TAC Air to Chattanooga. We are confident in
their ability to provide the quality and scope of service that our aviation
community expects and requires."
Jim McPhaul, TAC Air aviation vice president, said the Chattanooga facility
is comparable in size to TAC Air FBO at Lexington, KY (LEX). "We look forward
to introducing TAC Air's customer-friendly personal service, convenience and
technical skills to the Chattanooga users community."
The location includes eight hangars with 120,000 square feet of space and
44,000 of office space. It offers 31 T-hangars. Krystal Aviation has two fuel
farms offering 80,000 gallons of jet aviation fuel storage, 15,000 gallons of
aviation gasoline and 10,000 gallons of automobile fuel.
TAC Air is a division of Truman Arnold Companies (TAC), a national leader in
petroleum marketing and distribution. Greg Arnold, president and chief
operating officer of TAC said, "TAC Air is enthusiastic about this opportunity
for growth in our aviation network. Chattanooga is a vibrant, growing market
which geographically fits well in our network."
TAC Air (www.tacair.com) operates FBOs in Amarillo, TX (AMA), Denver, CO
(APA), Fort Smith, AR (FSM), Greenville, SC (GMU), Hartford, CT (BDL),
Lexington, KY (LEX), Omaha, NE (OMA), Shreveport, LA (SHV), and Texarkana, TX
(TXK).
In addition to their aviation division, TAC also operates a network of
petroleum terminals and transport trucks. Additionally, TAC's wholesale
division serves a variety of customers in 48 states. TAC is a national leader
in petroleum marketing and distribution, with annual volumes exceeding 1.5
billion gallons.
The Krystal Company (www.krystal.com), founded in 1932, develops, operates
and franchises quick service "Krystal" restaurants throughout the Southeastern
United States. The Company currently operates approximately 245 company-owned
restaurants and has approximately 175 franchise locations.
Contact Information:
The Krystal Company
Larry D. Bentley
Vice President & CFO
423-757-5673
TAC Air
Cheryl May
Director of Marketing
903-794-3835