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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
Date of Report (Date of earliest event reported) December 29, 1997
(Exact Name of Registrant as Specified in its Charter)
COHR INC.
(State of Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) 0-27506 Identification No.)
Delaware 95-4559155
21540 Plummer Street 91311
Chatsworth, California (zip code)
(Address of principal executive offices)
Registrant's Telephone Number, Including Area Code: (818) 773-2647
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ITEM 5. OTHER EVENTS.
COHR Inc. announced that it has engaged the investment banking firm of Lehman
Brothers as its financial advisor.
Lynn P. Reitnouer, recently-elected Chairman of the Board of Directors of COHR,
stated "Having Lehman Brothers assist us as we determine the future course of
the Company will help us focus on enhancing shareholder value." He further
stated "During this period of transition, as Steve Gamble continues to operate
the Company day-to-day, it is the Board's responsibility to the shareholders to
explore various strategic alternatives including the possible sale of the
Company." The Company's Board of Directors has made no determination at this
time that the Company is for sale, or to pursue any other course of action.
The Company also announced that, based on preliminary estimates, it expects that
its financial results for the third quarter ended December 31, 1997 will include
special charges of up to approximately $8.0 million before taxes. Of this
estimated charge, up to approximately $2.2 million relates to an increase in the
allowance for doubtful accounts receivable and up to approximately $3.2 million
relates to its Maintenance MasterPlan Contracts, including accruals of accounts
payable and reserves for shared savings. The remainder of the estimated charges
relate to severance expense, and non-recurring legal and accounting costs and
other items.
The estimated special charges are based on preliminary estimates and are
subject to change. The Board has engaged the Company's outside auditors to
perform audit procedures for the nine months ended December 31, 1997 and to
determine the impact, if any, of these items on previously reported results. A
final determination of the special charges and the periods, will not be known
until mid February.
In addition to the special charges and based upon preliminary estimates of
operating results for the third quarter, the Company stated it is not likely to
meet analysts' earnings expectations for the third quarter.
COHR Inc., a leading national health-care outsourcing organization, serves
hospitals, integrated health systems and alternate site providers with a wide
range of essential services and supplies.
This Report includes statements regarding anticipated suture developments that
are forward looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Because such statements involve risks and
uncertainties, the Company's actual future results could differ materially from
historical results and from those set forth in the forward looking statements.
Some of the factors that could cause actual
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results to differ materially include the effect of final accounting
adjustments, collectibility of accounts receivable, competitive conditions and
other factors identified in the Company's documents filed from time to time
with the Securities and Exchange Commission.
SIGNATURES
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.
COHR Inc.
Date: December 31, 1997 /s/ STEPHEN W. GAMBLE
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Stephen W. Gamble,
Chief Executive Officer
