Savvy Trades and Investments

[zenvesting]

FAT/FCCG: The replay of FAT Brands CC is now available (see links below).

A couple of the callers had questions about the relationship between FAT & FCCG. One caller asked questions about the relationship with FCCG and CEO Andy Wiederhorn declined to give much detail about FCCG directly, but did answer him to indicate that all director and executive compensation is coming from FAT Brands.

The last caller asked a few questions about Fog Cutter and the CEO did confirm that FCCG would receive the dividends on their 80% ownership, he also confirmed that FCCG has a tax loss carry forward for the FAT Brands business but that FAT would accrue for taxes at the ordinary corporate rate because the tax loss carry forward is FCCGs.

Most interesting for FCCG's shareholders was the last question I've paraphrased below:

Do you plan on bringing Fog Cutter out of the fog anytime in the future to improve transparency and corporate governance for all your public shareholders?

"The short answer is there is a net operating loss caryforward inside of fog cutter that is useful to Fat Brands therefore there is consolidation, we do hope that in the future there is some sort of transaction that enables, maybe it's a merger, maybe it's not maybe there's some other transaction that would allow the NOL to get 100% inside FAT Brands and not have to use a tax sharing agreement, but there's nothing certain about that. There's certainly been litigation at fog cutter and other things at fog cutter that we would want to make sure are cleaned up and they are not cleaned up yet so on that basis we chose to keep it separate to keep FAT Brands very clean and simple and easy to look at and that's why we came up with the structure we did and we think everyone will be happy that they are not having to worry about other liabilities at fog cutter at this point."

I take that as a pretty positive sign FCCG shareholders may eventually undergo a transaction that allows for full valuation of it's ownership of FAT, considering that FCCG is how the CEO maintains his ownership stake of FAT Brands. However, we should do some more research into what the outstanding litigation might be and the associated potential liabilities.

The full CC replay available here:

Conference Call and Webcast

FAT Brands will host a conference call and webcast to discuss financial results for the fiscal third quarter 2017, today at 5:00 PM ET. Hosting the call and webcast will be Andy Wiederhorn, President and Chief Executive Officer; and Ron Roe, Chief Financial Officer.

Interested parties may listen to the conference call via telephone by dialing 1-877-705-6003, or for international callers, 1-201-493-6725. A telephone replay will be available shortly after the call has concluded and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode is 13673895.

The webcast will be available at www.fatbrands.com under the invest section, and will be archived on the site shortly after the call has concluded.