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) MARCH 30, 1999
PAMECO CORPORATION
(Exact name of registrant as specified in its charter)
Commission File No: 001-12837
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GEORGIA 51-0287654
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(State or other jurisdiction (I.R.S. employer
of incorporation or identification
organization) number)
1000 CENTER PLACE
NORCROSS, GA 30093
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(Address of principal executive offices)
(770)-798-0700
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(Registrant's telephone number, including area code)
Not applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On March 30, 1999, the Registrant issued a Press Release
regarding a One-Time Pre-Tax Charge to Fiscal 1999 Earnings,
attached hereto as Exhibit 99.
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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 thereunto duly authorized.
PAMECO CORPORATION
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(Registrant)
By: /s/ THEODORE R. KALLGREN
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Theodore R. Kallgren
Chief Financial Officer
March 30, 1999 (Mr. Kallgren has been duly authorized
to sign on behalf of the registrant)
PAMECO
CORP
CONTACT:
Theodore R. Kallgren, CFO Van Negris / Philip J. Denning
Pameco Corporation Kehoe, White, Van Negris & Company,
Inc.
(770) 798-0600 (212) 396-0606
FOR IMMEDIATE RELEASE
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PAMECO TO TAKE PREVIOUSLY ANNOUNCED ONE-TIME PRE-TAX CHARGE
TO FISCAL 1999 EARNINGS OF $12-$15 MILLION
NORCROSS, GA MARCH 30, 1999 -- Pameco Corporation (NYSE: PCN) today
announced that the Company expects to take a previously announced
one-time pre-tax charge to fiscal 1999 earnings. While the amount
of this charge is not yet determinable, it is currently expected to
be in the range of $12-$15 million.
The one-time charge to fiscal 1999 earnings consists primarily of:
(i) the write-off of certain capitalized training and software costs
relating to implementation of the new MIS; (ii) a significant increase
in the Company's allowance for losses on accounts receivable relating
to the increase in aging of such receivables because of billing
statement delays and other inefficiencies associated with the
transition to the new MIS; (iii) the write-down of inventories
associated with certain discontinued product lines; (iv) costs
relating to the closing or combining of branch offices and to the
reorganization of the Company's distribution system across the
country; and (v) anticipated severance payments to the Company's
former president and chief executive officer, a former executive vice
president and its former chief information officer.
As previously announced, the Company expects to report revenues for
the fiscal 1999 fourth quarter and fiscal year ended February 28, 1999
of approximately $121 million and $625 million respectively. In
addition to the one-time charge, the Company expects to report an
operating loss for the fiscal 1999 fourth quarter ended February 28th
that will be significantly higher than previously anticipated,
although the exact amount of the loss has not yet been determined.
For the full fiscal year ended February 28, 1999, the Company expects
to report a profit from operations before interest and taxes.
The Company stated that it will continue to report to shareholders bi-
weekly through press releases updating the status of the Company's
operating results. To further insure strict compliance with the
disclosure policy, neither the Company nor any officer or director of
the Company will comment on the status of operations outside the
content of the bi-weekly releases until after the final audited
results for the fiscal year are published and filed with the SEC in a
Form 10-K report.
m o r e <PAGE>
Pameco Corporation
March 30, 1999
Page Two
Pameco Corporation has established a leading position in the
consolidating distribution segment of the climate control industry,
building a centralized national distribution network. Pameco's products
include a complete range of heating, air conditioning and refrigeration
("HVAC/R") equipment, parts and supplies for the light commercial and
residential HVAC markets and commercial refrigeration market. The
products sold by Pameco are used principally for the repair and
replacement of existing HVAC/R and for new construction. The Company
has 358 branches and 6 distribution centers in 47 states and in 95 of
the top 100 population centers in the United States.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Certain statements and other information contained in this
press release are "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that involve risks and
uncertainties including, without limitation, the Company's plans for
future business development activities, product mix, margin
enhancements, the timely review of the Company's MIS and the successful
implementation of the MIS and any additional enterprise wide software
required to enhance the functionality thereof, eventual improvements to
the Company's logistics and delivery system through the MIS, the
Company's ability to operate acquired companies in a profitable manner,
the ultimate collectability of the accounts receivable described above,
the value of inventories written down, the cost of branch closings and
distribution system reorganization and other risks and uncertainties
described in the Company's reports and filings with the Securities and
Exchange Commission. Investors are cautioned that any such forward-
looking statements are not guarantees of future performance, involve
risks and uncertainties, and that actual results may differ materially
from those contemplated by such forward-looking statements. The
projections contained herein speak only to the Company's expectations as
of the date of this press release. The Company expressly disclaims any
obligation or undertaking to release publicly any updates or revisions
to any such statement to reflect any change in the Company's
expectations or any change in events, conditions or circumstances on
which any such statement is based.
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