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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): September 28, 1998
EKCO GROUP, INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-7484 11-2167167
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
incorporation) No.)
98 Spit Brook Road, Nashua, New Hampshire 03062
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (603) 888-1212
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Item 5. Other Events.
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On September 28, 1998, the registrant issued a press release in which
it announced preliminary expectations for its third quarter sales and earnings.
For further information, reference is made to the press release, attached hereto
as an exhibit.
Item 7. Financial Statements and Exhibits.
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(c) Exhibit
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99 Press Release dated September 28, 1998.
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SIGNATURE
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.
EKCO GROUP, INC.
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(Registrant)
Date: October 1, 1998 /S/ JOHN JAY ALTHOFF
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John Jay Althoff
Vice President and
General Counsel
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EXHIBIT INDEX
TO THE EXHIBIT FILED HEREWITH
Exhibit
Number Exhibit Description
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99 Press Release dated September 28, 1998.
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[EKCO GROUP, INC. LETTERHEAD]
For: EKCO Group, Inc.
Contact: Don DeNovellis
Chief Financial Officer
(603) 888-1212
Christine DiSanto/Caroline Babbitt
FOR IMMEDIATE RELEASE Morgen-Walke Associates
- --------------------- (212) 850-5600
Jeff Siegel/Lauren Gargano
Morgen-Walke Associates
(212) 850-5600
EKCO GROUP, INC. ANNOUNCES PRELIMINARY EXPECTATIONS FOR
THIRD QUARTER SALES AND EARNINGS
Nashua, NH, September 28, 1998 - EKCO Group, Inc. (NYSE:EKO) today
announced preliminary expectations for financial performance for the third
quarter ended September 27, 1998.
The Company stated that sales for the third quarter are expected to
be approximately $89 million. The Company estimates that earnings for the third
quarter should be in the range of $0.16-$0.17 per share on a diluted basis,
compared to last year's earnings of $0.22 per share on a diluted basis. EKCO
intends to release full financial results for the third quarter on October 19,
1998.
The Company stated that third quarter results were impacted
principally by softness in its basic kitchen tools and gadgets business due to
slower than expected retail sell-through and competitive pricing pressure, as
well as continued weakening in its cleaning business for which the Company is
currently exploring strategic alternatives. The Company noted that most new
product introductions in its housewares business, including new cookware,
bakeware and cutlery products, continue to perform at or above plan. In
addition, while the macroeconomic environment overseas adversely affected the
Company's export business, sales at EKCO's venture in the United Kingdom remain
solid.
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Likewise, sales in Canada also remain strong, despite the weakening of the
Canadian dollar which has impacted profitability of EKCO's Canadian business.
Malcolm L. Sherman, EKCO Group Chairman and Chief Executive Officer,
stated, "Although we are disappointed with our third quarter financial
performance, we are confident that our operating and growth strategies are
continuing to take hold and will help us reach our long-term financial goals.
While competitive pressures are impacting our basic kitchen tools and gadgets
business, we have developed several strategic initiatives that have already
begun to offset the decline of this business. These initiatives include new
product development, expanded channels of distribution, and improved sourcing."
"In addition to our kitchenware initiatives, we have introduced new
lines of FARBERWARE(R) Bakeware, which have met with strong customer response.
Our new cookware products introduced in 1997 have also been strong sellers, as
have our new lines of barware, barbecue and cutlery. Additionally, the recently
acquired Regent Sheffield and Wiltshire brands are both performing well. We have
also successfully broadened our business in pet related products through the
acquisition of Aspen Pet Products, where profits have met or exceeded our
expectations. Going forward, we will continue to implement our `Good, Better,
Best' strategy, which has been well-received at retail, as well as expand our
product offerings to further penetrate existing accounts."
Mr. Sherman concluded, "As we look ahead, we believe that EKCO has a
combination of focused operating and growth strategies and a portfolio of
well-recognized brand names that should enable us to meet our long-term growth
objectives."
EKCO Group, Inc. is a leading manufacturer and marketer of branded
consumer products that are broadly marketed primarily through major mass
merchant, supermarket, home, hardware, specialty and department stores. The
Company's products include household items such as
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bakeware, kitchenware, pantryware, brooms, brushes and mops, as well as
nonpoisonous and low-toxic household pest control products and small animal care
and control products. In addition, the Company also markets pet supplies and
accessories, such as ropes, chews, collars and leashes, through its subsidiary,
Aspen Pet Products.
Except for the historical information contained herein, the matters discussed in
this press release are forward-looking statements made pursuant to the safe
harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Such statements are based on
management's current expectations and are subject to a number of factors and
uncertainties which could cause actual results to differ materially from those
described in the forward-looking statements. Such factors and uncertainties
include, but are not limited to: the impact of the level of the Company's
indebtedness; restrictive covenants contained in the Company's various debt
documents; general economic conditions and conditions in the retail environment;
the Company's dependence on a few large customers; price fluctuations in the raw
materials used by the Company; competitive conditions in the Company's markets;
the timely introduction of new products; the impact of competitive products and
pricing; certain assumptions related to consumer purchasing patterns; the
seasonal nature of the Company's business; and the impact of federal, state and
local environmental requirements (including the impact of current or future
environmental claims against the Company). As a result, the Company's results
may fluctuate. Additional information concerning risk factors that could cause
actual results to differ materially from those projected in the forward-looking
statements is contained in the Company's filings with the Securities and
Exchange Commission. These forward-looking statements represent the Company's
best estimates as of the date of this press release. The Company assumes no
obligation to update such estimates except as required by the rules and
regulations of the Securities and Exchange Commission. FARBERWARE(R) is a
registered trademark of Farberware, Inc.(R).
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