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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): NONE
AMERICAN RESIDENTIAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
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<S> <C> <C>
DELAWARE 1-11849 76-0484996
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
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POST OAK TOWER
5051 WESTHEIMER, SUITE 725
HOUSTON, TEXAS 77056-5604
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (713) 599-0100
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ITEM 5. OTHER EVENTS.
The Company announced that it expects earnings for the quarter
ended September 30, 1998 to be significantly below earnings for the same period
last year and consensus analyst estimates. The information set forth in the
press release of the Company issued September 25, 1998, which is filed as
Exhibit 99.1 hereto, is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) EXHIBITS
99.1 Press release issued September 25, 1998.
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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.
AMERICAN RESIDENTIAL SERVICES, INC.
/s/ John D. Held
By:----------------------------------------
John D. Held
Senior Vice President, General Counsel
and Secretary
Date: September 25, 1998
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INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
99.1 Press release issued September 25, 1998.
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EXHIBIT 99.1
[LOGO]
AMERICAN RESIDENTIAL SERVICES, INC.
FOR IMMEDIATE RELEASE CONTACT: Jennifer L. Tweeton
98-11 (713) 599-9015
AMERICAN RESIDENTIAL ANNOUNCES EXPECTED RESULTS TO BE LOWER THAN ESTIMATES
(HOUSTON) September 25, 1998 -- American Residential Services, Inc. (NYSE -
"ARS"), a leading provider of residential and commercial heating, air
conditioning, plumbing and electrical services, today reported that the Company
expects earnings for the quarter ended September 30, 1998 to be significantly
below earnings for the same period last year and consensus analyst estimates.
The Company also announced a plan formulated to improve productivity. This plan
includes:
- - Consolidation of the Company's regional management structure into fewer units,
- - Consolidation of certain regional administrative functions,
- - Increased focus on marketing and customer retention in the Company's retail
business,
- - Expansion of the existing information processes to provide increased support
to and accountability of operational management and senior management, and
- - Further efforts towards reduction of general and administrative costs.
"We have spent the last several months improving and standardizing our internal
information processes so that our management can be provided with the tools they
need to manage our operations, and we have made great progress in improving
those processes," stated Thomas Amonett, President and Chief Executive Officer.
"A result of these improved processes has been a clear indication that this
Company's internal structure also needed to be improved. The responsibility for
the new operational structure has been assumed by managers who have historically
been successful in producing consistent and expected results. They will have the
responsibility of leading local management and improving results in those areas
where the Company is still experiencing unsatisfactory results."
"In addition, operational management will relinquish certain administrative
functions so that the Company can achieve additional focus and increased
synergies. We are still committed to a decentralized management structure when
decisions about the customer are involved. However, it has become apparent that
the duplication of certain administrative functions can be significantly reduced
by being centralized, which will allow local management to focus on operations."
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"Internal growth and operating improvement will be the Company's primary focus.
Our acquisition activities will continue, but at a pace which does not divert
management's focus on internal growth objectives."
"Under this new structure our entire management team will also have increased
accountability for the performance of the Company," Mr. Amonett further
commented. "While we have made considerable progress in addressing many of the
issues within the Company and while many of the operating units are performing
well, we are clearly disappointed that the improvements in Company-wide
operations which we experienced in the second quarter could not be sustained. By
establishing a smaller, more focused management team that has already proven
itself, by committing to specific targets for that team along with
accountability for those targets and by intensifying our efforts at all levels
of management, I am confident we will see improvement in the performance of this
Company."
American Residential Services is engaged principally in providing comprehensive
maintenance, repair, replacement and new equipment installation services for
heating, air conditioning, plumbing, electrical, indoor air quality systems and
major home appliances, primarily in existing homes, homes under construction and
commercial buildings.
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on current plans and expectations of ARS and
involve risks and uncertainties that could cause actual future
activities and results of operations to be materially different from
those set forth in the forward-looking statements. Important factors
that could cause actual results to differ include, among others, risks
associated with acquisitions, the ability of the Company to
successfully implement its proposed restructuring plan, fluctuations in
operating results because of acquisitions and variations in stock
prices, competition, weather conditions and risks of operations and
integration of the newly acquired businesses.
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