<PAGE>
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) January 16, 1997
IKON Office Solutions, Inc.
(formerly Alco Standard Corporation)
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(Exact name of registrant as specified in its charter)
OHIO File No. 1-5964 23-0334400
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
P.O. Box 834, Valley Forge, Pennsylvania 19482
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Registrant's telephone number, including area code: (610) 296-8000
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Alco Standard Corporation
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
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On January 16, 1997, the Registrant reported its earnings for the
fiscal quarter ended December 31, 1996 from its continuing operation, IKON
Office Solutions, Inc.
At their annual meeting on January 23, 1997, shareholders of Alco
Standard Corporation (NYSE:ASN) voted to change the name of the company to IKON
Office Solutions, Inc., the name previously held by its sole operating unit. On
January 27, 1997 the company began trading on the New York Stock Exchange,
Chicago Stock Exchange and Philadelphia Stock Exchange under the ticker symbol
"IKN."
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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(c) Exhibits.
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(99) Press Release dated January 16, 1997
(99a) Press Release dated January 23, 1997
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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.
ALCO STANDARD CORPORATION
By: /s/ Michael J. Dillon
--------------------------------
Michael J. Dillon
Vice President and Controller
Dated: January 29, 1997
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Index to Exhibit
----------------
(99) Press Release dated January 16, 1997
(99a) Press Release dated January 23, 1997
<PAGE>
Exhibit 99
News Release
Contacts:
Michael N. Kilpatric Suzanne C. Shenk Susan G. Gaffney
Director, Communications Manager, Investor Relations Manager, Investor
610-993-3662 610-993-3526 Relations
610-993-3694
ALCO STANDARD ANNOUNCES 21 PERCENT INCREASE
IN FIRST QUARTER FISCAL 1997 INCOME
Valley Forge, Pennsylvania, January 16, 1997 - Alco Standard Corporation
(NYSE:ASN) today announced income in the first quarter of fiscal year 1997
(ended December 31, 1996) from its continuing operation, IKON Office Solutions,
was $45 million, excluding a one-time, extraordinary charge from the early
extinguishment of debt. The income results are a 21 percent increase over the
first quarter of the previous fiscal year. Earnings per share from continuing
operations for the quarter, excluding the charge, were $.30, a 20 percent gain
over the same period of fiscal 1996, despite a 13 percent increase in average
shares outstanding. Including the charge, income from continuing operations was
$33 million and earnings per share from continuing operations were $.21.
Revenues for fiscal 1997's first quarter grew 27 percent to $1.14 billion.
Results reflect a very strong performance from the company's traditional copier
business with substantial growth in both equipment placements and copy volume.
Margins declined to 7.1 percent this quarter from 7.6 percent in last year's
first quarter, due primarily to the short-term dilutive impact of IKON's rapid
acquisition of technology services companies and transformation expenses in
Europe.
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-more-
"IKON's outstanding results continue to reflect our ability to achieve
significant internal growth, while also expanding our business through an
aggressive acquisition effort," said John E. Stuart, Alco's chairman and chief
executive officer. "While posting internal revenue growth of 15 percent for the
quarter, IKON acquired 23 companies with annualized revenue of approximately
$170 million."
Stuart said that of the 23 acquired companies 10 were systems integrators,
seven were outsourcing companies, and six were traditional copier dealers. The
increasing number of systems integration and outsourcing companies in the
acquisition mix reflects IKON's intention to strengthen its ability to offer
customers a complete office technology solution, from traditional copier systems
to computer networking and outsourced imaging and duplicating services.
Including discontinued operations, Alco reported $53 million in net income
and $.36 earnings per share for the fiscal 1997 first quarter. Discontinued
operations represent Unisource Worldwide Inc. (UWW), which began operating as a
separate public company on January 1, 1997.
"With the continued growth in IKON's traditional copier business, and
increasing contributions from our outsourcing and technology services
businesses, we expect earnings per share for fiscal 1997 will be 35 to 40
percent ahead of last year," commented Stuart. "Our goal is to reach $10
billion in revenue by the year 2000, and we are well on our way."
-more
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Alco Standard Corporation, headquartered in Valley Forge, Pennsylvania,
operates IKON Office Solutions, one of the world's leading office technology
companies, with operations in the U.S., Canada, Mexico, United Kingdom, Germany,
France and Denmark. On January 23, 1997, shareholders will vote on changing
Alco's name to IKON Office Solutions. With approval, IKON Office Solutions will
begin trading on the NYSE January 27, 1997 under the ticker symbol "IKN".
###
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<TABLE>
<CAPTION>
Alco Standard Corporation
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FINANCIAL SUMMARY (in thousands, except earnings per share)
Three Months Ended December 31
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1996 1995 % Change
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<S> <C> <C> <C>
Revenues
Net sales $ 638,828 $ 515,012 24.0 %
Service and rentals 453,860 353,772 28.3
Finance income 47,746 31,795 50.2
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1,140,434 900,579 26.6
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Costs and Expenses
Cost of goods sold 404,934 333,226 21.5
Service and rental costs 216,107 169,335 27.6
Finance interest expense 20,011 14,809 35.1
Selling and administrative 417,970 314,534 32.9
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1,059,022 831,904 27.3
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Operating income 81,412 68,675 18.5
Interest expense 8,201 7,340
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Income from continuing operations before taxes
and extraordinary loss 73,211 61,335 19.4
Taxes on income 28,552 24,398 17.0
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Income from continuing operations before
extraordinary loss 44,659 36,937 20.9
Discontinued operations 20,151 26,229
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Income before extraordinary loss 64,810 63,166
Extraordinary loss from early extinguishment
of debt, net of tax benefit (12,156)
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Net income 52,654 63,166
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Less preferred dividends 4,885 7,664
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Available to common shareholders $ 47,769 $ 55,502
============ ==========
Earnings (Loss) Per Share
Continuing operations $0.30 $0.25 20.0 %
Discontinued operations $0.15 $0.22
Extraordinary loss ($0.09)
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</TABLE>
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<TABLE>
<S> <C> <C>
$0.36 $0.47
============ ==========
Average Shares Outstanding 134,346 118,544 13.3 %
============ ==========
Continuing Operations Analysis:
Gross profit %, net sales 36.6% 35.3%
Gross profit %, service and rentals 52.4% 52.1%
Gross profit %, finance subsidiaries 58.1% 53.4%
Total gross profit 43.8% 42.6%
SG&A as a % of revenue 36.7% 34.9%
Operating income % of revenue 7.1% 7.6%
</TABLE>
<PAGE>
Exhibit 99a
Contacts:
Michael N. Kilpatric Suzanne C. Shenk
Director, Communications Manager, Investor Relations
610-993-3662 610-993-3526
Alco Standard Changes Name
To IKON Office Solutions and Declares
Quarterly Dividend
New York, January 23, 1997--At their annual meeting today, shareholders of Alco
Standard Corporation (NYSE:ASN) voted to change the name of the company to IKON
Office Solutions Inc., the name previously held by its sole operating unit. On
January 27, 1997, the company will begin trading under its new name on the New
York Stock Exchange using the ticker symbol "IKN."
"Changing our name to IKON Office Solutions reflects our commitment to
build and expand the office technology business," said John E. Stuart, chairman
and chief executive officer of Alco and now IKON. "We will continue to grow
shareholder value by helping customers win in their marketplaces using IKON's
broad range of office solutions, from copier systems and business document
services to integrated computer networking and electronic imaging services."
At the annual meeting the shareholders also reelected the company's seven-
member board of directors.
-more-
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In addition, the IKON board of directors approved the regular quarterly
cash dividend of $.04 per common share. The dividend is payable March 10, 1997,
to shareholders of record February 24, 1997. Regular dividends to holders of
depository shares of Series BB serial preferred stock of record March 13, 1997,
will be paid April 1, 1997, at $1.26 per share.
With revenues of more than $4 billion, IKON Office Solutions is one of the
world's leading office technology companies with operations in the U.S., Canada,
Mexico, the United Kingdom, Germany, France and Denmark. With 35,000 employees,
the company expects revenues to reach $10 billion in the year 2000.
###
