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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) June 20, 1997
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TeleSpectrum Worldwide Inc.
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(Exact name of registrant as specified in its Charter)
Delaware 0-21107 23-2845501
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification Number)
incorporation or
organization)
443 South Gulph Road
King of Prussia, PA 19406
(610) 878-7400
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(Address, including zip code, and telephone
number [including area code] of registrant's
principal executive office)
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Item 5. Other Events
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Exhibit
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Press Release Dated June 20, 1997
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SIGNATURE
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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.
TELESPECTRUM WORLDWIDE INC.
BY: /s/ Richard C. Schwenk, Jr.
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Richard C. Schwenk, Jr.
Executive Vice President and
Chief Financial Officer
June 25, 1997
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EXHIBIT 99
[LOGO OF TELESPECTRUM
APPEARS HERE]
[LETTERHEAD OF TELESPECTRUM]
NEWS
FOR IMMEDIATE RELEASE Contact: Richard C. Schwenk, Jr., CFO
TeleSpectrum Worldwide Inc.
(610)878-7470
TELESPECTRUM WORLDWIDE INC. REVISES EARNINGS OUTLOOK
KING OF PRUSSIA, Pa.-June 20, 1997 -- TeleSpectrum Worldwide Inc. (NASDAQ: TLSP)
today announced that while it is normally the company's policy not to comment on
analysts' expectations, the company currently expects to show a slight loss for
the second quarter of 1997. Second quarter revenues, however, are expected to
increase by roughly 10 percent over revenues reported for the first quarter this
year, and approximately 70 percent over supplemental pro forma revenues in the
second quarter of 1996.*
TeleSpectrum said that the interruption in its pattern of strong
earnings growth was due primarily to aggressive expansion of its capacity.
Business at TeleSpectrum has grown from pro forma revenues of $26,470,000 in the
first quarter of 1996 to $49,154,000 in the first quarter of 1997, an 86%
increase. This strong performance spurred the investment in infrastructure,
information technology and personnel that has increased TeleSpectrum's
workstation capacity by 112% since the company's initial public offering last
August. When incoming business in the second quarter was delayed, the result
was lower profitability.
"We are a high-growth company and we committed ourselves to expansion.
We grew capacity and added personnel to meet expected demand from clients," said
J. Brian O'Neill, Chairman and Chief Executive Officer of TeleSpectrum Worldwide
Inc. "When some of that business was delayed, we filled most of our excess
capacity with less profitable business. As a result, our company did not
achieve the profits expected for this quarter."
-more-
* Supplemental pro forma of operations assume that the Company acquired the
Initial Operating Business on January 1, 1995. The results of operations for
TARP and PR Response are included only from their actual acquisition dates,
October 1, 1996 and November 1, 1996 respectively.
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Page 2 - TeleSpectrum Worldwide Inc. [LOGO]
Steps to Improve Performance
TeleSpectrum said that the company is pursuing a number of steps that
it believes will strengthen its financial performance. These steps include:
. Excess capacity means opportunity. TeleSpectrum is actively marketing
its excess capacity and is in negotiations for new third quarter
business. In addition, TeleSpectrum expects to expand business with
existing clients in its core industries.
. Strengthening the company. TeleSpectrum remains focused on integrating
operations, making new acquisitions, and strengthening management.
. Continuing efforts to streamline costs. A systematic review of all the
company's costs centers is already underway. Steps to improve
profitability are being taken.
Mr. O'Neill said, "Since our initial public offering in August of 1996,
TeleSpectrum Worldwide Inc. has successfully integrated nine companies, hired
more than 4,000 associates, installed more than 2,000 workstations, and achieved
strong revenue and earnings growth. With better utilization of our new,
state-of-the-art call centers, a continued focus on strengthening the company,
and a strong effort to cut costs, we expect our performance to improve
significantly."
The Company
Headquartered in King of Prussia, Pa., TeleSpectrum Worldwide Inc. is a
diversified provider of telemarketing services. TeleSpectrum companies and
operating units provide inbound and outbound telemarketing, inbound customer
service, direct mail and fulfillment, market research and other services such as
strategic database marketing, consulting and training. The company presently has
approximately 3,846 workstations in 32 call centers, and employs approximately
8,500 people in the United States, Canada and the United Kingdom.
Forward-looking Statements
The statements contained herein regarding TeleSpectrum's expected growth
and profitability are forward-looking statements that involve substantial risk
and uncertainty. In accordance with the Private Securities Litigation Reform
Act of 1995, the following are factors that could cause TeleSpectrum Worldwide
Inc.'s actual results to differ materially from those expressed or implied by
such forward-looking statements: agreements with its existing clients generally
do not assure a specific level or duration of revenue, the growth and
profitability assumptions assume the addition of new clients not currently
identified, and cost savings projected may not be realized.
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