Form 8-K

 

 

UNITED STATES

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

February 11, 2008 (February 5, 2008)

Date of Report (Date of earliest event reported)

 

 

QC HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Kansas   000-50840   48-1209939

(State or other jurisdiction

of incorporation)

  (Commission file number)  

(IRS Employer

Identification Number)

9401 Indian Creek Parkway, Suite 1500

Overland Park, Kansas 66210

(Address of principal executive offices)

(913) 234-5000

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

 

 

 


Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 5, 2008, the Compensation Committee of the Board of Directors of QC Holdings, Inc. (the “Company”) approved the 2008 annual cash incentive awards to, and adopted a long-term incentive plan for, certain executive officers of the Company. The annual cash incentive awards are designed so that a significant percentage of total executive cash compensation for 2008 is based on achieving certain performance measures. The long-term incentive plan is equity based and is designed to have both retention and performance-based elements. The 2008 incentive awards for executive officers are as follows:

 

     2008
Target Annual

Cash Incentive
($)
   Long-Term
Incentive –
Restricted Stock
(# of shares)
   Long-Term
Incentive –
Stock Options
(# of shares)

Darrin J. Andersen,
President and COO

   $ 292,500    31,740    90,000

Douglas E. Nickerson,
Chief Financial Officer

   $ 150,000    10,580    30,000

Michael O. Walrod,
Vice President of Operations/
Western Division

   $ 100,000    5,300    15,000

Wayne S. Wood,
Vice President of Operations/
Eastern Division

   $ 100,000    5,300    15,000

The opportunity to earn annual cash incentive compensation is based on the achievement of performance measures set by the Compensation Committee. For 2008, the annual incentive goals are based 35% on attainment of a certain diluted earnings per share, 35% on the attainment of certain adjusted EBITDA, and 30% at the discretion of the committee. Adjusted EBITDA is calculated as net income before interest, taxes, depreciation and amortization expenses, adjusted to exclude the charges related to stock options and restricted stock awards and non-cash gains or losses associated with property disposition. The targets set by the Compensation Committee are achievable, but will require the Company to have outstanding financial performance in order for the goals to be met.

Participants in the plan may earn 50% of the target annual cash incentive compensation shown above by achieving a threshold of 80% of the targeted performance measures, and up to a maximum of 200% of the target annual incentive compensation by achieving 120% of the targeted performance measures. The Compensation Committee retains the authority to make bonus payments in addition to, or in lieu of, payments under the annual incentive plan and has the authority to modify, amend or adjust the performance measures established under the plan.

On February 5, 2008, the Compensation Committee also adopted a long-term incentive plan and made awards pursuant thereto under the Company’s 2004 Equity Incentive Plan, a copy of which has previously been filed with the Securities and Exchange Commission. Long-term incentive awards consist of approximately 50% of value in stock options and 50% of value in restricted stock awards for executive officers. Each long-term incentive plan award of restricted stock and each option to purchase common stock of the Company vests over time, 25% on each of the first four anniversaries of the grant date. The option awards were made at $10.19 per share, the closing price of the Company’s common stock on the date of grant. A summary of the long-term incentive plan is attached as Exhibit 10.1.

 

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Item 9.01. Financial Statements and Exhibits.

 

  (d) Exhibits.

The following exhibits are filed with this report:

 

10.1

  Long-Term Incentive Plan.

 

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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.

 

  QC HOLDINGS, INC.
Date: February 11, 2008    
  By:  

/s/ Douglas E. Nickerson

  Name:   Douglas E. Nickerson
  Title:   Chief Financial Officer

 

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