-----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, URNDytkm1oPEKed1M72mBX1CyaM+yvdn1rSHtmr3U/VM2XA4A6lLIHNSaUKKfQ1y hZdOibwLvlOsQxnGZ+NO1w== 0000950144-96-003731.txt : 19960627 0000950144-96-003731.hdr.sgml : 19960627 ACCESSION NUMBER: 0000950144-96-003731 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960625 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960626 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: DANKA BUSINESS SYSTEMS PLC CENTRAL INDEX KEY: 0000894010 STANDARD INDUSTRIAL CLASSIFICATION: PHOTOGRAPHIC EQUIPMENT & SUPPLIES [3861] IRS NUMBER: 980052869 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20828 FILM NUMBER: 96586176 BUSINESS ADDRESS: STREET 1: 11201 DANKA CIRCLE N CITY: ST PETERSBURG STATE: FL ZIP: 33716 BUSINESS PHONE: 8135766003 MAIL ADDRESS: STREET 1: 11201 DANKA CIRCLE NORTH CITY: ST PETERSBURG STATE: FL ZIP: 33716 8-K 1 DANKA BUSINESS SYSTEMS, PLC FORM 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Act of 1934 Date of Report (Date of earliest event reported): June 25, 1996 ________________________________ DANKA BUSINESS SYSTEMS PLC (Exact name of registrant as specified in its charter) UNITED KINGDOM 33-68278 98-0052869 - --------------- ----------- ------------------- (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 11201 DANKA CIRCLE NORTH ST. PETERSBURG, FLORIDA 33716 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's Telephone Number, Including Area Code: 813-576-6003 THIS INSTRUMENT CONTAINS 6 PAGES. THE EXHIBIT INDEX IS LOCATED ON PAGE 5. -1- 2 ITEM 5. OTHER EVENTS. On June 25, 1996, Danka Business Systems PLC, a U.K. corporation (the "Company") issued a press release, a copy of which is attached as Exhibit "99," announcing an estimated range of results for its first quarter ending June 30, 1996. The Company anticipates, based on preliminary information, that Company revenues will range between $401.0 and $405.0 million and earnings from operations between $27.5 and $29.0 million. Net earnings before income taxes are projected to range between $22.3 and $23.5 million. Net earnings after taxes are projected to range between $13.8 million and $14.6 million, equivalent of $0.24 to $0.25 per American Depositary Share, provided, however, that no unexpected events occur before the end of the quarter. The Company believes that its earnings will be affected by expenses associated with the expansion of its salesforce, support personnel and infrastructure which have not, as yet, yielded expected productivity, and unanticipated costs incurred to regionally centralize certain management and administrative functions. Danka is aggressively hiring and training new field sales representatives and support staff for its core operations. The Company is making significant investments in the infrastructure necessary to support this enlarged group of professionals and the incremental expenses associated with such activities impacts profitability. To focus the Company's efforts towards digital color and high-volume products, major markets and growth of its core business, Danka is moving away from its traditional branch management concept to a more centralized, market oriented, support concept of administration ("Market Based Approach"). Under a Market Based Approach, most of the administrative and management functions which were performed at the branch level are centralized on a regional basis. Such functions include managerial support, service dispatch, billing and collections, supply sales and equipment setup and delivery. This Market Based Approach is ultimately expected to provide for a higher quality of customer support, increased productivity and reduced administrative costs. Danka's implementation of the Market Based Approach has resulted in a duplication of certain administrative and management functions, which has increased selling, general and administrative costs. The Company continues to direct significant resources towards the growth of its core commercial business and to key acquisition activities. During the last nine months, Danka expanded its efforts to market digital color products and high-volume copiers across North America. The Company more than doubled the number of its locations selling digital color products; and, since January 1996 has opened three additional regional digital support centers. To direct and assist its customers' implementation of digital technology, Danka has doubled the number of Certified Network -2- 3 Engineers on its staff. The Company also completed its initial six phase roll-out of the Kodak high-volume copiers to 35 major markets throughout North America. Each of these actions were essential to the expansion of the Company's digital color and high-volume markets which are among the primary areas of Danka's future growth. ITEM 7. Financial Statements and Exhibits. (c) Exhibits. The Exhibits to this Report are listed in the Exhibit Index set forth elsewhere herein. -3- 4 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. DANKA BUSINESS SYSTEMS PLC By: /S/ DAVID C. SNELL ----------------------------- David C. Snell Its: Finance Director and Chief Financial Officer Dated: June 26, 1996 -4- 5 INDEX TO EXHIBITS
EXHIBIT SEQUENTIALLY NUMBER EXHIBIT NUMBERED PAGE ------- ------- ------------- 99 Press Release of the Company dated June 25, 1996, announcing 6 estimated first quarter ending June 30, 1996 results.
-5- EX-99 2 PRESS RELEASE 1 EXHIBIT 99 DANKA PRESS RELEASE FOR IMMEDIATE RELEASE WILLIAM T. FREEMAN 813-576-6003 PAUL G. DUMOND JUNE 25, 1996 011-44171-603-1515 DANKA ANNOUNCES ESTIMATED FIRST QUARTER RESULTS Danka Business Systems PLC (NASDAQ: DANKY) today announced an estimated range of results for its first quarter ending June 30, 1996. Based upon preliminary information currently available to the Company, Danka anticipates that its revenues will be between $401.0 and $405.0 million, while earnings from operations are expected to range between $27.5 and $29.0 million. Provided that no unexpected events occur before the end of the quarter, net earnings before income taxes are projected to reach between $22.3 and $23.5 million, equivalent to $0.24 to $0.25 per American Depositary Share. The Company believes that its earnings will be affected by expenses associated with the expansion of its salesforce, support personnel and infrastructure which have not, as yet, yielded expected productivity, and unanticipated costs incurred to regionally centralize certain management and administrative functions. Danka is aggressively hiring and training new field sales representatives and support staff for its core operations. The Company is making significant investments in the infrastructure necessary to support this enlarged group of professionals and the incremental expenses associated with such activities impacts profitability. To focus the Company's efforts towards digital color and high-volume products, major markets and growth of its core business, Danka is moving away from its traditional branch management concept to a more centralized, market oriented, support concept of administration ("Market Based Approach"). Under a Market Based Approach, most of the administrative and management functions which were performed at the branch level are centralized on a regional basis. Such functions include managerial support, service dispatch, billing and collections, supply sales and equipment setup and delivery. This Market Based Approach is ultimately expected to provide for a higher quality of customer support, increased productivity and reduced administrative costs. Danka's implementation of the Market Based Approach has resulted in a duplication of certain administrative and management functions, which has increased selling, general and administrative costs. The Company continues to direct significant resources towards the growth of its core commercial business and to key acquisition activities. During the last nine months, Danka expanded its efforts to market digital color products and high-volume copiers across North America. The Company more than doubled the number of its locations selling digital color products; and, since January 1996 has opened three additional regional digital support centers. To direct and assist its customers' implementation of digital technology, Danka has doubled the number of Certified Network Engineers on its staff. The Company also completed its initial six phase roll-out of the Kodak high-volume copiers to 35 major markets throughout North America. Each of these actions were essential to the expansion of the Company's digital color and high-volume markets which are among the primary areas of Danka's future growth. 2 Dan Doyle, Chief Executive, commented, "Danka is making significant investments to introduce leading-edge products, increase market penetration, streamline field operations, and provide a higher level of customer care and service. The added expenses are affecting Danka's current profitability. The anticipated positive impact from these changes inevitably takes time, but upon their achievement, should position the Company for sustainable growth into the future. We believe that the steps we are taking are in the long-term best interest of the Company, and that our plans to increase the number and capability of our salesforce and expand our product offerings should enhance shareholder value." Danka Business Systems PLC, headquartered in St. Petersburg, Florida, is one of the largest independent suppliers of photocopiers, facsimiles and other automated office equipment in North America and Europe. ### 11201 Danka Circle North 107 Hammersmith Road St. Petersburg, Florida 33716 London, England W14 OQH -2- -----END PRIVACY-ENHANCED MESSAGE-----