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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): August 29, 1999
STAFFMARK, INC.
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(Exact name of registrant as specified in its charter)
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Delaware 0-20971 71-0788538
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(State or other jurisdiction of (Commission File Number) ( I.R.S. Employer
incorporation or organization) Identification No.)
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234 East Millsap Road, Fayetteville, Arkansas 72703
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(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code (501) 973-6000
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Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events
Attached as an exhibit to this Form 8-K is a copy of a StaffMark, Inc.
press release which was disseminated publicly on August 29, 1999.
(c) Exhibits. The following exhibit is filed with this Form 8-K:
99.1 StaffMark, Inc. Press Release dated August 29, 1999.
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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.
STAFFMARK, INC.
(Registrant)
Date: August 29, 1999 By: /s/ Terry C. Bellora
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Terry C. Bellora
Chief Financial Officer
EXHIBIT INDEX
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EXHIBIT NO. DESCRIPTION
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99.1 StaffMark, Inc. Press Release dated August 29, 1999.
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EXHIBIT 99.1
[STAFFMARK LETTERHEAD]
FOR IMMEDIATE RELEASE: Sunday, August 29, 1999
CONTACT: Clete T. Brewer, President and Chief Executive Officer
Terry C. Bellora, Chief Financial Officer
Randle G. Reece, CFA, Investor Relations Officer
STAFFMARK, INC.
(501) 973-6084
STAFFMARK ANNOUNCES APPOINTMENT OF FINANCIAL ADVISOR AND COMMENTS
ON YEAR 2000 IMPACT ON IT STAFFING AT MEETING OF
ANALYSTS AND COMMERCIAL BANKERS
FAYETTEVILLE, Ark.--StaffMark, Inc. (NASDAQ/NM: STAF), an international provider
of human resource and business solutions, made a series of announcements,
summarized below, at a meeting of its financial analysts and commercial bankers
being held here today and Monday at its new worldwide corporate headquarters.
As a result of the continuing global consolidation of the staffing industry, and
with the objective of maximizing stockholder value, Clete Brewer, President and
Chief Executive Officer of StaffMark, announced that the Board of Directors had
appointed Credit Suisse First Boston as its financial advisor to work with
management in examining strategic alternatives for the company.
Brewer also said that the company will announce in the next few weeks a new
President who has extensive industry and international management experience. In
addition, Brewer reported that the company expects to add outside directors who
have knowledge in areas that are important to the development of the company and
stockholder value. By year end, the company anticipates that its Board of
Directors will be composed of a majority of outside directors.
Brewer announced that the IntelliMark information technology services and
solutions business continues to make progress in its previously announced
restructuring efforts, although these efforts are not yet complete. Year
2000-related spending and staffing uncertainties in the marketplace, as
disclosed previously by the company, have created additional ongoing challenges
for the restructuring process. Management believes IT staffing industry trends,
including customers' focus on Year 2000 compliance spending and anticipated
deferrals of other IT spending and staffing requirements until calendar year
2000, will slow IT staffing industry growth, including the growth of
IntelliMark, for the second half of 1999 and adversely impact StaffMark's
operating results for the second half of the 1999 fiscal year.
The company also presented to the meeting the current industry environment and
historical achievements of its five business platforms.
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StaffMark--Commercial Services
StaffMark has expanded into a number of new service opportunities including call
center solutions, professional/technical, desktop publishing, medical, bilingual
services, and skills training centers. The leading growth driver of StaffMark
Commercial is the Strategic Resource Group, which provides on-site managed
staffing services to 95 large corporate clients. StaffMark is one of the 10
largest commercial staffing companies in the United States.
IntelliMark--IT Staffing and Business Solutions
Aside from Year 2000-related IT staffing uncertainties, IntelliMark continues to
focus on enhancing the delivery of its vertical solutions including ESOLUTIONS
(through Edgewater Technology), help desk services, distributed services and
workforce development solutions.
Robert Walters--Finance and Accounting
Resource Solutions--Human Resource Outsourcing
Robert Walters continues to expand its global client services and candidate
sourcing with the opening of offices in Paris in July, Dublin in August and the
planned startup of Resource Solutions activities in Tokyo in September.
Continental Europe continues to deregulate, and clients are requesting global
solutions to their professional recruitment needs. Hong Kong and Singapore
offices are benefiting from local market conditions.
Resource Solutions is offering clients cost-effective solutions to the
outsourcing of human capital requirements.
ClinForce--Clinical Trials Support Services
ClinForce is benefiting from the strong research and development pipeline of the
pharmaceutical and biotech industries. Tight labor supply in those industries
has increased the attractiveness of flexible skilled labor, which is the
specialty of ClinForce.
Strategic Legal Resources--Legal and Paralegal
Strategic Legal Resources opened an office in Chicago, its third office overall,
in June and is working with Robert Walters in New York to develop a global
professional legal recruitment business.
ABOUT STAFFMARK
StaffMark, Inc., provides human resource and business solutions through five
specialty platforms: StaffMark commercial staffing and training services;
IntelliMark information technology staffing and solutions; Robert Walters
finance/accounting staffing services; ClinForce clinical trials support
services; and Strategic Legal Resources legal and paralegal staffing services.
The company has developed proprietary consulting tools and solutions that form
the foundation of its managed staffing and master vendor services. StaffMark
operates in more than 330 offices in 32 states and 14 countries. Find more
information at www.staffmark.com.
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This Press Release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, including statements
made with respect to a new president, new outside directors, IT staffing
industry trends, a slowing of IntelliMark staffing growth and adverse second
half operating results. Words such as "expect," "intend," "anticipate" and
"believe" and plural, tense or negative or variations thereon and similar
expressions are intended to identify forward-looking statements. These
forward-looking statements inherently involve certain risks and uncertainties,
although they are based on our current plans or assessments that are believed to
be reasonable as of the date of this Press Release. Factors that may cause
actual results, goals, targets or objectives to differ materially from those
contemplated, projected, forecast, estimated, anticipated, planned or budgeted
in such forward-looking statements include, among others, the following
possibilities: (i) the availability of qualified president and outside director
candidates who are able to serve StaffMark, (ii) an inability to successfully
implement the executive and organizational changes previously announced,
including the IntelliMark restructuring; (iii) the continuation, or worsening,
of declines in demand for placement (permanent or temporary) of staffing or
solutions services; (iv) changes in industry trends such as changes in the
demand for or supply of commercial or professional/information technology
staffing personnel, whether on a temporary or permanent placement basis and
whether arising out of Year 2000 trends, uncertainties and spending delays or
otherwise; (v) failure to obtain new customers or retain significant existing
customers; (vi) loss of key executives; and/or (vii) general economic and
business conditions (whether foreign, national, state or local). Actual events
or results may differ materially from those discussed, contemplated, forecasted,
estimated, anticipated, planned or implied in the forward-looking statements as
a result of the various factors described above and those further set forth
under the headings "Management's Discussion and Analysis-Year 2000 Compliance"
and "Special Note Regarding Forward Looking Statements" in the Company's
Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission
on August 13, 1999, "Business--Factors Affecting Finances, Business Prospects
and Stock Volatility" in the Company's Form 10-K filed with the Securities and
Exchange Commission on March 16, 1999, and under the heading "Potential Risks,
Detriments and Other Considerations Associated With The Transaction" in the
Company's definitive proxy statement dated September 25, 1998, which was filed
with the Securities and Exchange Commission on September 25, 1998.
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