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) October 25, 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. First Quarter Earnings Announced
New England Business Service, Inc. announced earnings for the
first quarter ended September 28, 1996.
For the first quarter, the Company's revenue amounted to
$60,700,000 versus $63,800,000 in the same period last year.
Of the $3.1 million decline, $2.3 million was attributable to the
repositioning of the Company's software product line, including
the divestiture of One-Write Plus. Sales this quarter about equaled
those in the fourth quarter of fiscal year 1996 and reflect more
recent firmness in revenue results.
Earnings per share as reported were $0.05 and included exit costs
of $0.21 in the quarter due to the previously announced
discontinuation of manned print desks in Kinko's stores and certain
other restructuring actions. Reported earnings per share in the first
quarter of last year were $0.04 and included $0.34 in restructuring
costs.
Item 6. Not Applicable.
Item 7. Exhibits.
Exhibit No. Description
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(99) Press release, dated October 25, 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/John F. Fairbanks
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John F. Fairbanks
Vice President, Chief Financial
Officer
Dated: October 25, 1996
NEWS
OCTOBER 25, 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 FIRST QUARTER EARNINGS
GROTON, MA -- October 25, 1996 -- New England Business Service, Inc.
(NYSE: NEB) today announced earnings for the first quarter ended September 28,
1996.
For the first quarter, the Company's revenue amounted to $60,700,000 versus
$63,800,000 in the same period last year. Of the $3.1 million decline, $2.3
million was attributable to the repositioning of the Company's software product
line, including the divestiture of One-Write Plus. Sales this quarter about
equaled those in the fourth quarter of fiscal year 1996 and reflect more recent
firmness in revenue results.
Earnings per share as reported were $0.05 and included exit costs of $0.21 in
the quarter due to the previously announced discontinuation of manned print
desks in Kinko's stores and certain other restructuring actions. Excluding
one-time costs, earnings per share amounted to $0.26 and equaled those of the
fourth quarter of 1996. Reported earnings per share in the first quarter of last
year were $0.04 and included $0.34 in restructuring costs.
Mr. Robert J. Murray, Chairman and CEO commented, "The joint decision with
Kinko's to pursue a new direction was reached when we became convinced that the
economics of NEBS manned desks would not work. The length of time and cost
required to build demand would have made continued investment excessively high.
Importantly, 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
to $0.14 per share. Growth in the retail channel will remain a focus, and we
will pursue the NEBS dealer program which has provided consistent sales and
profit growth. Further, the technology developed during the Kinko's evaluation
will play an important role in both direct marketing and retail channels as we
move forward."
Mr. Murray further stated, "We are encouraged by some very recent sales results
in the core direct marketing part of the business. Increased mail investment
and a greater emphasis on promotional activities have begun to produce improved
sales trends. Our work on the Company's strategic plan is underway and will
help us to prioritize the additional growth opportunities."
Mr. Murray added, "Frank L. Randall, Jr., a member of the Board of Directors
since 1980, retired from the Board today. His counsel and support of NEBS over
the years have been greatly valued. He will be missed and we wish him well."
The two million Company share repurchase which commenced in May of this year has
been fully completed. At its regular meeting on October 25, 1996, the Board of
Directors approved a new plan to repurchase up to an additional two million
shares over the next two years. The Board also approved a dividend of $0.20 per
share with a record date of November 8, 1996 and a payment date of
November 22, 1996.
NEBS designs and produces business forms and related printed products and
distributes software and related products through mail order and retail to over
one million small businesses throughout the United States, Canada and the
United Kingdom.
* * * * * *
FINANCIAL HIGHLIGHTS (unaudited)
(In Thousands of Dollars)
Three Months Ended
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September 28, September 30,
1996 1995
Net Sales 60,702 63,788
Cost and Expenses 59,555 62,922
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Income Before Taxes 1,147 866
Income Taxes 469 325
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Net Income (a) 678 541
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Earnings Per Share $0.05 $0.04
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(a) Net income for the first quarter ended September 28, 1996 included an after
tax charge of $2,833 or $0.21 per share related to the discontinuation of the
Kinko's retail initiative along with other cost actions. Net income for the
first quarter ended September 30, 1995 included $5,072 or $0.34 per share of
after tax charges and expense relating to the implementation of a cost reduction
program which included a plant consolidation.
