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 26, 1995
NEW ENGLAND BUSINESS SERVICE, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-11427 04-2942374
-------- ------- ----------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
500 Main Street 01471
Groton, Massachusetts -----
--------------------- (Zip Code)
(Address of principal executive offices)
(508) 448-6111
--------------
(Registrant's telephone number,
including area code)
N/A
---
(Former name or former address, if changed since last report)
<PAGE> 2
Items 1-4. Not Applicable.
Item 5. Cost Reduction Program Announced, First Quarter Charge to be Taken
New England Business Service, Inc. announced the decision to
implement an cost reduction program over the course of fiscal 1996.
The program's total cost of $12,164,000 is expected to reduce first
quarter earnings by $ .32 per share and earnings for the remainder
of the year by $.15 per share.
As part of the program, the Company will incur a one-time charge of
$3,034,000 in the first quarter and expense of $3,575,000 during the
year associated with a plan to restructure operations. In addition,
the Company will incur a one-time charge of $4,225,000 in the first
quarter and expense of $1,330,000 during the year associated with
the revaluation of certain software-related assets including its
investment in GST Software, plc. The program's cost savings are
expected to be fully offset during fiscal 1996 by the investment
requirements of the Company's new product and channel development
initiatives.
The operational restructuring includes plans to improve
manufacturing efficiency, to outsource non-critical corporate
functions and to reduce fixed costs. The restructuring will result
in a reduction of approximately 5% of the Company's 2,055 full and
part-time positions and the closure of the Company's Flagstaff,
Arizona manufacturing facility.
Item 6. Not Applicable.
Item 7. Exhibits.
Exhibit No. Description
----------- -----------
(99) Press release, dated September 26, 1995,
issued by the Company.
Item 8. Not Applicable.
<PAGE> 3
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.
NEW ENGLAND BUSINESS SERVICE, INC.
(Registrant)
By: /s/Russell V. Corsini, Jr.
------------------------------
Russell V. Corsini, Jr.
Vice President, Chief Financial
Officer
Dated: September 26, 1995
NEBS
NEWS
SEPTEMBER 26, 1995
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
RUSSELL V. CORSINI, JR. OR
JOHN F. FAIRBANKS AT (508) 448-6111
NEW ENGLAND BUSINESS SERVICE, INC.
ANNOUNCES COST REDUCTION PROGRAM;
FIRST QUARTER CHARGE TO BE TAKEN
GROTON, MA -- September 26, 1995 -- New England Business Service, Inc.
(NYSE: NEB) today announced the decision to implement an aggressive cost
reduction program over the course of fiscal 1996. The program's total cost
of $12,164,000 is expected to reduce first quarter earnings by $ .32 per
share and earnings for the remainder of the year by $.15 per share.
As part of the program, the Company will incur a one-time charge of $3,034,000
in the first quarter and expense of $3,575,000 during the year associated with
a plan to restructure operations. In addition, the Company will incur a
one-time charge of $4,225,000 in the first quarter and expense of $1,330,000
during the year associated with the revaluation of certain software-related
assets including its investment in GST Software, plc. The program's
significant cost savings are expected to be fully offset during fiscal 1996 by
the investment requirements of the Company's new product and channel
development initiatives.
The operational restructuring includes plans to improve manufacturing
efficiency, to outsource non-critical corporate functions and to reduce fixed
costs. The restructuring will result in a reduction of approximately 5% of
the Company's 2,055 full and part-time positions and the closure of the
Company's Flagstaff, Arizona manufacturing facility.
William C. Lowe, President and CEO, explained, "Results are on track for the
year. However, during fiscal 1995, the Company experienced a reduced rate of
growth in its traditional direct mail channel. This trend highlights the
importance of rapidly shifting Company resources to address small business
market opportunities through multiple channels. The restructuring program's
cost savings will be utilized fully during fiscal 1996 to continue the
roll-out of NEBS custom print desks in Kinko's stores beyond the 50 desks
currently in operation, to ensure the successful introduction of One-Write
Plus(R) for Windows and to enhance the Company's color printing capability.
The program further supports our commitment to accelerate revenue growth while
maintaining strong operating profit margins."
NEBS designs and produces business forms, software and related printed products
which it sells through mail order and retail to over one million small
businesses throughout the United States, Canada and the United Kingdom.
* * * * * *
