-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AQrWmVXnCYDks0r8lIaXgusmnKSEjXuWsk41fIzIepukZ89p1sz19UeX4RhhOFZJ Xa0RcOTs72w1FrySaYY0Bg== 0001036050-97-000408.txt : 19970627 0001036050-97-000408.hdr.sgml : 19970627 ACCESSION NUMBER: 0001036050-97-000408 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970619 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970626 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALCO CAPITAL RESOURCE INC CENTRAL INDEX KEY: 0000922255 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PAPER AND PAPER PRODUCTS [5110] IRS NUMBER: 232493042 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20405 FILM NUMBER: 97630381 BUSINESS ADDRESS: STREET 1: 1738 BASS RD CITY: MACON STATE: GA ZIP: 31210 BUSINESS PHONE: 2152968000 MAIL ADDRESS: STREET 1: BOX 834 CITY: VALLEY FORGE STATE: PA ZIP: 19482 8-K 1 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) June 19, 1997 IKON CAPITAL, INC. (Exact name of registrant as specified in its charter)
DELAWARE File No. 0-20405 23-2493042 - ------------------------------ ---------------- -------------- (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification Number)
1738 Bass Road, Macon, Georgia 31210 ------------------------------ ----- (Address of principal executive offices) (Zip Code) (912) 471-2300 Registrant's telephone number, including area code: Not Applicable -------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events. ------------ On June 19, 1997, the Registrant's parent, IKON Office Solutions, Inc. ("IKON") issued a press release announcing that IKON's earnings for the third quarter ending June 30, 1997 would be lower than expected, due to short-term issues related to the acceleration of its business transformation process. Excluding $18 million to $22 million in transformation costs, IKON expects to earn approximately $0.30 to $0.32 per share compared with a consensus market expectation of $0.40 per share. For the fourth quarter, IKON now expects earnings per share in the range of $0.33 to $0.36 before transformation costs of about $20 million to $25 million. IKON stated that, despite the reduced expectations, its business remains strong, with continuing healthy revenue growth and solid gross margins in all aspects of its operations; the shortfall does not reflect any fundamental operating problems. Of the operating income shortfall IKON anticipates in the third quarter, approximately half is due to lower sales productivity in certain markets, which is expected to result in a lower internal revenue growth rate of approximately 11% to 12% in North America. The remaining half of the shortfall is due to SG&A (sales, general and administrative) expenses that were expected to be eliminated in the third quarter through the transformation process. The press release further indicated that IKON's transformation, which has been underway for eighteen months, has achieved substantial progress and is on target to be substantially completed by the end of 1998. In fiscal 1998, IKON expects to achieve 20% earnings growth, excluding transformation costs of $50 million to $75 million. This report includes information which may constitute forward-looking statements about the Registrant or IKON made pursuant to the safe harbor provisions of the federal securities laws. Although the Registrant believes the expectations contained in such forward-looking statements are reasonable, no assurances can be given that such expectations will prove correct. This information is subject to risks and uncertainties that could significantly affect the Registrant's and/or IKON's current plans, anticipated actions and future financial condition and results. These uncertainties and risks include, but are not limited to, those relating to IKON's successful management of an aggressive program to acquire and integrate new companies, risks and uncertainties (applicable to both the Registrant and IKON) relating to conducting operations in a competitive environment; delays, difficulties, technological changes and employment issues (applicable to both the Registrant and IKON) associated in a large-scale transformation project; debt service requirements (applicable to both the Registrant and IKON) including sensitivity to fluctuation in interest rates; and general economic conditions. Therefore, actual results may differ materially from the forward-looking statements. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. ------------------------------------------------------------------ (c) Exhibits. -------- (99) Press Release dated June 19, 1997 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. IKON CAPITAL, INC. By: /s/ O. Gordon Brewer, Jr. ---------------------------------- O. Gordon Brewer, Jr. Treasurer Dated: June 19, 1997 Index to Exhibit ---------------- (99) Press Release dated June 19, 1997 EX-99 2 PRESS RELEASE 06/19/97 EXHIBIT 99
CONTACTS: Michael N. Kilpatric Steven K. Eck Suzanne C. Shenk Susan G. Gaffney News Media News Media Investor Relations Investor Relations 610-993-3662 610-993-3501 610-993-3526 610-993-3694 mkilpatric@ikon.com seck@ikon.com sshenk@ikon.com sgaffney@ikon.com
IKON OFFICE SOLUTIONS LOWERS EARNINGS EXPECTATION FOR THIRD QUARTER CITES SHORT-TERM ISSUES RELATED TO ACCELERATION OF COMPANY'S TRANSFORMATION PROCESS VALLEY FORGE, PENNSYLVANIA---JUNE 19, 1997---IKON Office Solutions (NYSE: IKN) today announced that it anticipates lower-than-expected earnings in its fiscal third quarter, ending June 30. The Company said that the decline is due to short-term issues related to the acceleration of its business transformation process. IKON expects to earn, excluding $18 million to $22 million in transformation costs, approximately $0.30 to $0.32 per share in the third quarter compared with a consensus market expectation of $0.40 per share. For the fourth quarter, the Company now expects earnings per share in the range of $0.33 to $0.36 before transformation costs of about $20 million to $25 million. Of the operating income shortfall we anticipate in the third quarter, approximately half is due to lower sales productivity in certain markets which we expect will result in a lower internal revenue growth rate of approximately 11 percent to 12 percent in North America. The remaining half is in SG&A (sales, general and administrative) expenses that were expected to be eliminated this quarter through the transformation process. "Despite the reduced expectations, our business remains strong, with continuing healthy revenue growth and solid gross margins in all aspects of our operations," said John E. Stuart, IKON's chairman and chief executive officer. "However, we - more - overestimated our ability to complete the transformation while also maintaining the 'sprint pace' in growth that we have enjoyed historically. We failed to recognize the temporary strain the transformation would put on sales growth in our traditional copier business. At the same time, however, our newer businesses--outsourcing and technology services--continue on plan and are performing exceptionally well. "Our business strategy is sound, and our long-term prospects are excellent. The markets in which we compete are high-growth and service-oriented, and we are changing our infrastructure and processes to capitalize on the many opportunities there. IKON's transformation, which has been underway for 18 months, has achieved significant progress and is on target to be substantially completed by the end of 1998. In 1998, we expect to achieve 20 percent earnings growth, excluding transformation costs of $50 million to $75 million. The shortfall we are announcing today does not reflect any fundamental operating problems." Stuart added, "At the end of the second quarter in March of this year, we entered the most challenging stage of the accelerated transformation as we began the actual movement of people and processes within IKON. This is inherently the most disruptive phase of the change process, and we very much underestimated its impact on our business." IKON's transformation program includes a variety of activities designed to significantly lower its administrative costs and dramatically improve margins. These activities include consolidating purchasing, inventory control, logistics, and other activities into 13 customer service centers in the United States, establishing a single financial processing center, building a common information technology system, adopting a common name, and creating sales and service marketplaces. Stuart said, "We remain committed to substantially completing the transformation on time, and we are confident that our total solutions strategy will result in significant growth and increased shareholder value." IKON Office Solutions (HTTP://WWW.IKON.COM) is one of the world's leading office technology companies providing customers with total office solutions from copier and printing systems, computer networking and digital document services to copy center - more - management, technology training and electronic file conversion. With fiscal 1996 revenues of more than $4 billion, IKON Office Solutions has more than 900 locations in the U.S., Canada, Mexico, the United Kingdom, France, Germany and Denmark. This news release includes information which may constitute forward-looking statements made pursuant to the safe harbor provisions of the federal securities laws. Although IKON believes the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectation will prove correct. This information is subject to risk and uncertainties such as those relating to managing an aggressive program to acquire and integrate new companies; conducting activities in a competitive environment; delays, difficulties, management transitions and employment issues associated with its transformation project; and general economic conditions. Therefore, actual results may differ materially from the forward-looking statements. # # # -----END PRIVACY-ENHANCED MESSAGE-----