8-K 1 w54894e8-k.txt FORM 8-K 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 Date of Report (Date of earliest event reported): November 21, 2001 -------------------------- The Fortress Group, Inc. -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Delaware 0-28024 54-1774977 ---------------------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 1650 Tysons Boulevard, Suite 600, McLean, Virginia 22102 ---------------------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code)

Registrant's Telephone No., Including Area Code: (703) 442-4545 ------------------ Item 9 - Regulation FD Disclosure Attached as Exhibit 1 is a copy of a press release issued by the Company on November 21, 2001. Attached as Exhibit 2 is a copy of the Invitation by the Company to holders to offer to sell for cash certain of the Company's 13.75% Senior Notes due 2003, described in the press release. 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 thereunto duly authorized. The Fortress Group, Inc. Date: November 21, 2001 By: /S/ George C. Yeonas --------------------------- --------------------------------- George C. Yeonas Chief Executive Officer 2

FORTRESS DISPOSITIONS PRO FORMA -------- ------------ --------- GROUP, INC. AND DEBT CONSOLIDATED ----------- -------- ------------ REPURCHASE (1) -------------- ASSETS: Cash and Cash Equivalents $ 7,412 $ 859 $ 8,271 Accounts Receivable, net 11,400 (1,993) 9,407 Inventories 312,111 (128,721) 183,390 Mortgage Loans 12,153 0 12,153 Property and Equipment, net 11,032 (4,040) 6,992 Other Assets, net 38,444 (4,911) 33,533 Goodwill 29,015 (13,530) 15,485 ------ -------- ------ TOTAL ASSETS $421,567 $(152,336) $269,231 ======= ========= ======= LIABILITIES AND SHAREHOLDERS' EQUITY: Short Term Liabilities $58,580 $(14,325) $44,255 Notes, Long Term Liabilities 285,641 (134,884) 150,757 Shareholders' Equity 77,346 (3,127) 74,219 ------ --------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $421,567 $(152,336) $269,231 ======= ========= ======= TANGIBLE NET WORTH (TNW) $48,331 $58,734 DEBT TO TNW 5.91 2.57 TOTAL LIABILITIES TO TNW 7.12 3.32

Christopher Brookstone Florida Whittaker Company Total ----------- ---------- -------- --------- --------- ------ Assets $ (43,902) $ (10,118) $ (43,465) $ (59,301) $ 4,450 $(152,336) Liabilities (33,821) (6,063) (19,317) (34,823) (9,385) (103,409) Senior Notes 0 0 0 0 (45,800) (45,800) Equity 0 0 0 0 (3,127) (3,127)

FORTRESS DISPOSITIONS (2) PRO FORMA -------- ---------------- --------- GROUP, INC. CONSOLIDATED ----------- ------------ ASSETS: Cash and Cash Equivalents $ 7,314 $ (972) $ 6,342 Accounts Receivable, net 10,577 268 10,845 Inventories 245,203 (28,828) 216,375 Assets Held for Sale 61,123 (60,190) 933 Mortgage Loans 12,657 0 12,657 Property and Equipment, net 7,636 (1,100) 6,536 Other Assets, net 36,214 (1,822) 34,392 Goodwill 14,981 0 14,981 -------- ------- ------ TOTAL ASSETS $395,705 $(92,644) $303,061 ======= ======== ======= LIABILITIES AND SHAREHOLDERS' EQUITY: Short Term Liabilities $55,571 $(11,681) $43,890 Notes, Long Term Liabilities 260,976 (74,037) 186,939 Shareholders' Equity 79,158 (6,926) 72,232 ------- ------- ------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $395,705 $(92,644) $303,061 ======= ======== ======= TANGIBLE NET WORTH (TNW) $64,177 $57,251 DEBT TO TNW 4.07 3.27 TOTAL LIABILITIES TO TNW 4.93 4.03

Christopher Whittaker Company Total ----------- --------- ------- ------ Assets $ (35,710) $ (62,150) $ 5,216 $ (92,644) Liabilities (25,204) (50,691) (9,823) (85,718) Equity 0 0 (6,926) (6,926)

FORTRESS DISPOSITIONS (3) PRO FORMA -------- ---------------- --------- GROUP, INC. CONSOLIDATED ----------- ------------ Total Homebuilding Revenue $682,733 $(281,324) $401,409 Cost of Sales 582,113 (247,878) 334,235 ------- --------- ------- Gross Profit 100,620 (33,446) 67,174 Operating Expenses 82,454 (27,112) 55,342 ------ -------- ------ 18,166 (6,334) 11,832 Impairment Charges 14,849 (9,650) 5,199 ------ ------- ----- Operating Income 3,317 3,316 6,633 Other (Income) Expenses (183) 855 672 ----- --- --- Homebuilding Pretax Profit 3,500 2,461 5,961 Financial Services 440 0 440 --- ----- --- INCOME BEFORE TAXES 3,940 2,461 6,401 Provision for Income Taxes 1,726 1,009 2,735 ----- ----- ----- NET INCOME $2,214 $1,452 $3,666 ===== ====== ===== Net Loss/Income Applicable to Common Shareholders $ (455) $1,452 $ 997 ===== ====== ====== Net (Loss)/Income Per Share, Basic $(0.15) $0.47 $0.32 ===== ====== ===== Net (Loss)/Income Per Share, Diluted $(0.15) $0.31 $0.16 ===== ====== =====

Christopher Brookstone Florida Whittaker Total ----------- ---------- ------- --------- ------ Revenues $ (66,004) $ (28,067) $(104,642) $ (82,611) $(281,324) Cost of Sales (63,208) (23,473) (91,514) (69,683) (247,878) Operating Expenses (7,286) (3,367) (7,131) (9,328) (27,112) Impairment Charges (7,030) (2,620) 0 0 (9,650)

FORTRESS DISPOSITIONS (4) PRO FORMA -------- ---------------- --------- GROUP, INC. CONSOLIDATED ----------- ------------ Total Homebuilding Revenue $263,433 $(79,915) $183,518 Cost of Sales 221,331 (69,586) 151,745 ------- -------- ------- Gross Profit 42,102 (10,329) 31,773 Operating Expenses 38,093 (10,766) 27,327 ------ -------- ------ 4,009 (437) 4,446 Impairment Charges 18,013 (13,800) 4,213 ------ -------- ----- Operating Income (14,004) 14,237 233 Other (Income) Expenses (381) 432 51 ----- --- -- Homebuilding Pretax (Loss)/Profit (13,623) 13,805 182 Financial services 221 0 221 Gain on Sale of Subsidiaries 1,755 (1,755) 0 ----- ------- -- (LOSS)/INCOME BEFORE TAXES AND EXTRAORDINARY ITEM (11,647) 12,050 403 (Benefit)/Provision for Income Taxes (4,775) 4,940 165 ------- ----- --- (LOSS)/INCOME BEFORE EXTRAORDINARY ITEM $(6,872) $7,110 $ 238 ====== ====== ====== (Loss) Applicable to Common Shareholders Before Extraordinary Item $(8,172) $7,110 $(1,062) ====== ====== ====== (Loss) Per Share Before Extraordinary Item, Basic $(2.64) $(2.30) $(0.34) ====== ====== ====== (Loss) Per Share Before Extraordinary Item, Diluted $(0.90) $(0.78) $(0.12) ====== ====== ======

Christopher Brookstone Florida Whittaker Total ------------ ---------- -------- --------- ------ Revenues $ (25,145) $ (1,166) $ (24,696) $ (28,908) $ (79,915) Cost of Sales (22,958) (760) (21,153) (24,715) (69,586) Operating Expenses (3,247) (427) (2,266) (4,826) (10,766) Impairment Charges 0 0 0 (13,800) (13,800)

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