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: JUNE 29, 1999
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(DATE OF EARLIEST EVENT REPORTED)
RESEARCH, INCORPORATED
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(Exact name of registrant as specified in its charter)
MINNESOTA 0-2387 41-0908058
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(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of Incorporation)
6425 FLYING CLOUD DRIVE
EDEN PRAIRIE, MINNESOTA 55344
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(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 829-8301
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Items 1, 2, 3, 4, 6 and 8 are not included.
ITEM 5. OTHER EVENTS.
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On June 29, 1999 Research, Incorporated announced that Company had
entered into a property sale/leaseback agreement with Continental Property
Group, Inc. The Company will sell its Eden Prairie building and land and
subsequently lease the property back. Further details of this action are
contained in the press release of Research, Incorporated, dated June 29, 1999
attached hereto as Exhibit 99.1 and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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(c) Exhibits.
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99.1 Press release.
SIGNATURES
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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.
RESEARCH INCORPORATED
By /s/ Claude C. Johnson
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Claude C. Johnson
President
July 15, 1999
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Exhibit 99.1
RESEARCH, INC. ANNOUNCES PROPERTY SALE/LEASEBACK
TRANSACTION PROVIDES RESEARCH WITH INCREASED FINANCIAL FLEXIBILITY
Eden Prairie, MN - Research, Inc. (Nasdaq; RESR) announced today that it has
entered into a sale/leaseback contract with Continental Property Group, Inc., a
Minneapolis-based real estate development company. Under the terms of the
agreement, Research will sell its building and approximately 11 acres of
surrounding land to Continental and subsequently lease the property back. The
sale price is $3,650,000, the proceeds of which will be used by Research to
reduce debt. The transaction will allow Research to take advantage of deferred
tax benefits and is expected to result in a pre-tax gain of $2.2 million, which
will be recognized over the seven-year leaseback period. The transaction is
expected to close in 60 days, subject to fulfillment of customary terms and
conditions.
Said Claude Johnson, Research's President and Chief Executive Officer, "The
sale/leaseback agreement is yet another step in our strategic plan to more
effectively manage our assets and reduce costs. In addition to providing us with
enhanced cash flow, the agreement will allow us to reduce our cost of capital,
and accelerate our growth rate- at terms favorable to the company and its
shareholders. In fact," added Johnson, "the agreement will prove to be a real
complement to our current financial structure and result in more appropriate
debt-to-equity and current ratios."
In a recent announcement, Research said that it had hired investment banker John
G. Kinnard & Company, Incorporated, to assist it in exploring strategic
alternatives, including the possible sale or merger of the company, to maximize
shareholder value and accelerate growth. Research also said that it expected
profitable growth to continue for the remainder of fiscal 1999.
Research, Inc. designs and manufactures complete product solutions based on its
core competency: the precise control of heat. The company does business
worldwide through its three divisions: Drying, Research International, and
Thermal Solutions. The company's products target high-growth markets including
printing (ink drying) and semiconductor assembly and packaging. Research, Inc.
is headquartered in Eden Prairie, MN, and has subsidiary operations in Plymouth,
England. The Company's common stock trades on the Nasdaq SmallCap Market under
the symbol: RESR. Additional news and information can be found on the Company's
website at http://www.researchinc.com.
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