SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): JANUARY 24, 2002
FRIEDMAN'S INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction 0-22356 58-20583
of incorporation) (Commission File Number) (IRS Employer Identification No.)
4 WEST STATE STREET
SAVANNAH, GEORGIA 31401
(Address of principal executive offices)
(912) 201-6103
(Registrant's telephone number, including area code)
ITEM 5. OTHER EVENTS.
CONSOLIDATED RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
Our consolidated ratio of earnings to combined fixed charges and preferred
stock dividends, including our consolidated subsidiaries, is computed by
dividing earnings by fixed charges. We do not currently have, and during the
periods presented did not have, any preferred stock outstanding. For the purpose
of computing the ratio of earnings to fixed charges, earnings consist of pre-tax
income from continuing operations before adjustment for minority interests in
consolidated subsidiaries or income or loss from equity investees, fixed
charges, amortization of capitalized interest, distributed income of equity
investees, and our share of pre-tax losses of equity investees for which charges
arising from guarantees are included in fixed charges, LESS capitalized interest
and the minority interest in pre-tax income of subsidiaries that have not
incurred fixed charges. Fixed charges consist of interest costs, whether
expensed or capitalized, the interest component of rental expense and
amortization of debt costs, discounts and issue costs, whether expensed or
capitalized. The following table sets forth our consolidated ratios of earnings
to combined fixed charges and preferred stock dividends for the periods shown:
FISCAL YEARS ENDED
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SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 29,
1997 1998 1999 2000 2001
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7.8x 3.1x 3.8x 3.8x 2.4x(1)
(1) We have guaranteed the obligations of our affiliate, Crescent Jewelers,
under their credit facility which matures on March 31, 2002. While we expect
Crescent to be able to replace their credit facility prior to its maturity
date, we have recorded the entire outstanding amount under Crescent's credit
facility as a liability on our balance sheet at September 29, 2001. Assuming
that we had been required to service this indebtedness ($108 million at
September 29, 2001) under our guarantee during fiscal 2001 at a borrowing
rate of 6.57% (Crescent's borrowing rate at September 29, 2001), our ratio
of earnings to combined fixed charges for the fiscal year ended September
29, 2001 would have been 1.9x. Please refer to our Annual Report on
Form 10-K for the year ended September 29, 2001, for more information.
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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.
FRIEDMAN'S INC.
(Registrant)
Date: January 24, 2002 By: /s/ Victor M. Suglia
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Victor M. Suglia
Senior Vice President,
Chief Financial Officer
and Secretary
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