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 18, 1996
NEW ENGLAND BUSINESS SERVICE, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-11427 04-2942374
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(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
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(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. New Kinko's Retail Direction Announced, First Quarter Charge
to be Taken
New England Business Service, Inc. announced the decision to
eliminate the Company's 75 existing NEBS manned print desks at
Kinko's as well as the closing of the NEBS offices in Phoenix
and stationery plant in Scottsdale, Arizona. The total cost
of $6,500,000 is expected to reduce first quarter earnings by
$0.21 per share and earnings for the remainder of the year by
$0.08 per share. As part of the program, the Company will incur
a one-time exit charge of $5,200,000 in the first quarter and
expense of $1,300,000 during the year associated with employee
severance, facility closures, equipment write-offs, and other
cost actions. The actions taken are expected to have the
effect, when fully implemented, of increasing the Company's
quarterly earnings by as much as $0.12 $o.14 per share.
The restructuring will result in a reduction of approximately 11%
of the Company's full and part-time positions.
Item 6. Not Applicable.
Item 7. Exhibits.
Exhibit No. Description
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(99) Press release, dated September 18, 1996,
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 18, 1996
NEWS
SEPTEMBER 18, 1996
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
RUSSELL V. CORSINI, JR. OR
TIMOTHY D. ALTHOF (508) 448-6111
NEW ENGLAND BUSINESS SERVICE, INC.
ANNOUNCES NEW KINKO'S RETAIL DIRECTION;
FIRST QUARTER CHARGE TO BE TAKEN
GROTON, MA -- September 18, 1996 -- New England Business Service, Inc.
(NYSE: NEB) today announced it has reached a joint decision with Kinko's
Corporation to pursue a new direction with their retail initiative. The
action will result in the elimination of the Company's 75 existing NEBS
manned print desks at Kinko's as well as the closing of the NEBS offices
in Phoenix and stationery plant in Scottsdale, Arizona. The decision will
result in a reduction of approximately 11% of the Company's full and
part-time positions. The company will take a first quarter pretax exit
charge of approximately $5.2 million and expects to incur additional pretax
expense of $1.3 million during the year.
As part of this action, the Company will incur a total of $0.21 per share
in the first quarter of fiscal year 1997 in exit and period costs associated
with employee severence, facility closures, equipment write-offs, and
other cost actions. In addition, the Company anticipates incurring
approximately $0.05 per share in period costs during the second quarter
and $0.03 per share during the third quarter associated with consolidating
operations and other cost reduction actions. The actions taken are expected
to have the effect, when fully implemented, of increasing the Company's
quarterly earnings ny as much as $0.12 to $0.14 per share.
Mr. Robert J. Murray, Chairman and CEO, explained, "During the past year the
Company continued its initiative to locate NEBS print desks in Kinko's retail
locations so as to expand its presence in the retail channel. As a result of
extensive market testing, we found that the expenses necessary to build demand
for custom printing in Kinko's and associated costs of NEBS infrastructure do
not allow for the profitable operation of NEBS-manned desks. The Company
remains committed to growing the retail channel through its profitable dealer
network, and will continue to work with Kinko's to formulate an economically
sound program for their sites. While the Kinko's initiative in its original
configuration has been costly for NEBS, we believe the experience gained and
the investments in technology made over the past year will provide a solid
foundation for alternative retail growth strategies."
NEBS manufactures and distributes business forms, software and related printed
products through mail order and retail to over one million small businesses
throughout the United States, Canada and the United Kingdom.
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