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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 19, 1999
IKON Office Solutions, Inc.
(Exact name of registrant as specified in its charter)
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OHIO File No. 1-5964 23-0334400
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
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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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Not Applicable
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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 19, 1999, IKON Office Solutions, Inc. ("IKON" or "the
Registrant") announced that it anticipates first quarter earnings to exceed the
First Call consensus estimate of $.05 per share for the quarter ending December
31, 1998. Based on preliminary results, the Company expects earnings per share
for the quarter to be in the range of $.12 to $.15, excluding a gain from asset
securitization of $.04 to $.06 per share. Revenues for the quarter are expected
to be in the range of $1.36 billion to $1.39 billion, excluding the gain from
asset securitization of $12 million to $16 million.
IKON also stated that, based on a single quarter of performance and the
balance of the initiatives being rolled out, it would not adjust its full-year
earnings expectation at this time. The Company's complete first quarter
earnings report will be released on January 27, 1999.
This Report includes or incorporates by reference information which may
constitute forward-looking statements within the meaning of the federal
securities laws, including, but not limited to, predictions of IKON's earnings
per share and revenues for the first quarter of fiscal 1999 and earnings
expectations for fiscal 1999. Although the Registrant believes the expectations
contained in such forward-looking statements are reasonable, no assurances can
be given that such expectations will prove correct. Such forward-looking
information is based upon management's current plans or expectations and is
subject to a number of uncertainties and risks that could significantly affect
current plans, anticipated actions and the Registrant's future financial
condition and results. These uncertainties and risks include, but are not
limited to, risks and uncertainties relating to conducting operations in a
competitive environment; delays, difficulties, technological changes, management
transitions and employment issues associated with consolidation of business
operations; risks and uncertainties associated with the implementation of a
preferred vendor program; risks and uncertainties relating to successfully
managing the integration of acquired companies, including companies with
technical services and products that are relatively new to the Registrant, and
also including companies outside the United States, which present additional
risks relating to international operations; risks and uncertainties relating to
potential year 2000 deficiencies associated with the operation of IKON's
internal systems and distributed products; debt service requirements (including
sensitivity to fluctuation in interest rates); and general economic conditions.
As a consequence, current plans, anticipated actions and future financial
condition and results may differ materially from those expressed in any forward-
looking statements made by or on behalf of the Registrant.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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(99) Press Release dated January 19, 1999
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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.
IKON OFFICE SOLUTIONS, INC.
By: /s/MICHAEL J. DILLON
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Michael J. Dillon
Vice President and Controller
Dated: January 19, 1999
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CONTACTS:
Susan G. Gaffney Veronica L. Rosa
Investor Relations Investor Relations
610-408-7292 610-408-7196
[email protected] [email protected]
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IKON OFFICE SOLUTIONS COMMENTS ON FIRST QUARTER EARNINGS EXPECTATION
NEW INITIATIVES LEAD TO IMPROVEMENT IN GROSS MARGINS AND
STABILIZATION IN UNDER-PERFORMING REGIONS
VALLEY FORGE, PENNSYLVANIA -- JANUARY 19, 1999 -- IKON Office Solutions (NYSE:
IKN) announced today that it anticipates first quarter earnings to exceed the
First Call consensus estimate of $.05 per share for the quarter ending December
31, 1998. Based on preliminary results the Company expects earnings per share to
be in the range of $.12 to $.15, excluding a gain from asset securitization of
$.04 to $.06 per share. Revenues are expected to be in the range of $1.36
billion to $1.39 billion, excluding the gain from asset securitization of $12
million to $16 million.
At this time the Company does not feel it appropriate, based on a single quarter
of performance and the balance of the initiatives being rolled out, to adjust
its full-year earnings expectation. The Company's complete first quarter
earnings report will be released on January 27, 1999.
The better than expected profitability results from improved gross profits on
both equipment and aftermarket sales, as well as the initial turnaround in the
Company's under-performing regions.
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Sales results for the first quarter reflect the transitional impact of the
Company's efforts to change its mix of business to more high-margin products and
services, and the focus on profitability and stabilization which has resulted in
the elimination of some unprofitable revenue streams.
IKON Office Solutions (www.ikon.com) is one of the world's leading office
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technology companies, providing customers with total office solutions from
copier and printing systems, computer networking and digital document services
to copy center management, technology training and electronic file conversion.
With fiscal 1998 revenues of $5.6 billion, IKON has more than 1,000 locations in
the U.S., Canada, Mexico, the United Kingdom, France, Germany and Denmark.
This news release includes information that may constitute forward-looking
statements made pursuant to the safe harbor provisions of the federal securities
laws. Although IKON believes the expectations contained in such forward-looking
statements are reasonable, it can give no assurance that such expectations will
prove correct. This information is subject to risk and uncertainties such as
those relating to conducting activities in a competitive environment; delays,
difficulties, management transitions and employment issues associated with
consolidation of business operations; managing the integration of acquired
companies; risks and uncertainties associated with implementation of a preferred
vendor program and general economic conditions. Therefore, actual results may
differ materially from the forward-looking statements.
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