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) April 26, 2000
IKON Office Solutions, Inc.
(Exact name of registrant as specified in its charter)
OHIO File No. 1-5964 23-0334400
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
P.O. Box 834, Valley Forge, Pennsylvania 19482
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (610) 296-8000
Not Applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
------------
On April 26, 2000, the Registrant announced results for the second
quarter of fiscal year 2000. The Registrant's press release dated April 26, 2000
containing further detail is attached.
On April 26, 2000, the Registrant announced that James J. Forese has
been named to the additional post of Chairman of IKON's Board of Directors. The
Registrant's press release dated April 26, 2000 containing further detail is
attached.
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: statements concerning expected
revenue growth, cost savings and increased productivity and margins resulting
from the Registrant's growth and productivity initiatives; and IKON's full year
peformance. Although IKON believes the expectations contained in such
forward-looking statements are reasonable, it can give no assurances that such
expectations will prove correct. Such forward-looking statements are based upon
management's current plans or expectations and are subject to a number of risks
and uncertainties, including, but not limited to, risks and uncertainties
relating to conducting operations in a competitive environment and a changing
industry; delays, difficulties, management transitions and employment issues
associated with consolidation of, and/or changes in business operations;
managing the integration of existing and acquired companies; risks and
uncertainties associated with existing or future vendor relationships; and
general economic conditions. Certain additional risks and uncertainties are set
forth in IKON's 1999 Annual Report on Form 10-K/A filed with the Securities and
Exchange Commission. As a consequence of these and other risks and
uncertainties, Registrant's current plans, anticipated actions and future
financial condition and results may differ materially from those expressed in
any forward-looking statements.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
------------------------------------------------------------------
c. The following exhibits are furnished in accordance with the provisions of
Item 601 of Regulation S-K:
(99) Press Release dated April 26, 2000
(99.1) Press Release dated April 26, 2000
<PAGE>
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/WILLIAM S. URKIEL
William S. Urkiel
Senior Vice President and
Chief Financial Officer
Dated: May 3, 2000
Exhibit 99
Contacts:
Veronica L. Rosa Steve Eck
Investor Relations Media Relations
610-408-7196 610-408-7295
[email protected] [email protected]
IKON OFFICE SOLUTIONS ANNOUNCES SECOND QUARTER RESULTS
Company Reports Revenue Growth Year-to-Year and Sequentially
Company Continues to Invest in Growth Initiatives
Valley Forge, Pennsylvania - April 26, 2000 - IKON Office Solutions (NYSE: IKN)
today reported results for the second quarter of fiscal 2000. IKON reported net
income of $34.9 million, or $.23 per common share, including a one-time gain
from insurance proceeds of $.06 per common share, for the quarter ended March
31, 2000, compared to net income of $22.9 million, or $.15 per common share, for
the comparable period in 1999.
Revenues for the quarter were $1.38 billion, a 1% increase from the same period
a year ago and a 4% increase from the first quarter of fiscal 2000. Leading the
revenue growth in the quarter was the Company's equipment business, which
experienced growth of 9% over the first quarter of fiscal 2000, primarily in
digital, color and high-end segment 3-6 sales.
"The performance of the Company continues to improve and we are making progress
on a number of growth initiatives, including substantial improvements in sales
productivity," said James J. Forese, President and Chief Executive Officer. "Our
strong equipment growth enabled us to exceed our revenue expectations for the
quarter. Driving this success is a turnaround in our core equipment business,
which we have been rebuilding and realigning for growth in markets such as
high-end and print-on-demand solutions, digital and color, and integrated
solutions. We also continued to experience double-digit growth in our facilities
management business for the quarter.
"Revenues in our Technology Services group continue to be impacted by a softened
demand in the industry for internal network integration services as companies
shift focus to external Internet-based application development. We have formed
an eBusiness development group that consolidates our strong capabilities in this
area to take advantage of this growth market," Mr. Forese continued.
Gross margins for the quarter declined from 37.0% to 36.4% year-to-year. This
decline was primarily the result of lower service margins offset by an
improvement in equipment margins. Lower service margins were attributable to
decreased productivity as the Company implements new digital technology and new
training programs. Also contributing to the decline in service margins was a
reduction in service revenues from the Company's Technology Services business.
<PAGE>
"Over the past two years, we have invested in the development of a strong
infrastructure, and we are making steady gains in implementing our ongoing
competitiveness and productivity initiatives. These actions enable us to invest
in our growth initiatives and execute our strategy of providing the high-end,
integrated solutions that our customers require," stated Mr. Forese.
Since the beginning of its fiscal second quarter on January 1st, the Company has
continued to pursue initiatives that leverage its strengths and take advantage
of growth opportunities, as follows:
o Completed 70% of its plan to expand sales coverage by an additional 400-500
sales representatives with a focus on key growth areas such as color,
high-volume, major accounts and outsourcing;
o Improved sales force productivity by 17% compared to the previous year;
o Launched a branding campaign to position the Company using the theme, "The
Way Business Gets Communicated";
o Expanded its high-end, digital solutions for the production market by
launching the Canon imageRUNNER 110 and the Ricoh Aficio 850 with a cluster
print configuration late in the quarter;
o Launched Digital Express(R) 2000, a Web-based document management solution
to leverage IKON's robust network of digital production centers for
print-on-demand solutions;
o Formed key alliances with leading vendors, such as Adobe Systems and Splash
Technology, for new digital document workflow and color solutions,
respectively, and also with Fatbrain.com to offer a Web-based enterprise
solution for information management using IKON's Digital Express(R) 2000
network for on-demand printing of documentation; and
o Formed a new eBusiness Development group in Technology Services to leverage
IKON's recognized technical expertise in eCommerce and infrastructure
development.
"We are moving forward with these growth initiatives to expand our existing
businesses and capture opportunities in new markets. In the short term, given
some of the issues confronting our business such as service margins, the
performance of Technology Services, and potential pricing pressure in the
industry, we are cautiously optimistic about our earnings performance for the
remainder of the year. However, we firmly believe that we are making steady
progress in building our business and remain optimistic about IKON's long-term
outlook for growth and profitability," Mr. Forese concluded.
A complete replay of IKON's conference call with investors will be available
over the Internet on IKON's investor relations home page later today. To listen,
go to www.ikon.com and click on Invest in IKON.
IKON Office Solutions (www.ikon.com) is one of the world's leading providers of
products and services that help businesses communicate. IKON provides customers
with total business solutions for every office, production and outsourcing need,
including copiers and printers, color solutions, distributed printing,
facilities management, imaging and legal outsourcing solutions, as well as
network design and consulting, application development and technology training.
<PAGE>
With fiscal 1999 revenues of $5.5 billion, IKON has approximately 900 locations
worldwide including the United States, Canada, Mexico, the United Kingdom,
France, Germany, Ireland, and Denmark.
This news release includes information which may constitute forward-looking
statements within the meaning of the federal securities laws, including, but not
limited to: statements concerning expected revenue growth, cost savings and
increased productivity and margins resulting from IKON's growth and productivity
initiatives; and IKON's full year performance. Although IKON believes the
expectations contained in such forward-looking statements are reasonable, it can
give no assurances that such expectations will prove correct. Such
forward-looking statements are based upon management's current plans or
expectations and are subject to a number of risks and uncertainties, including,
but not limited to, risks and uncertainties relating to conducting operations in
a competitive environment and a changing industry; delays, difficulties,
management transitions and employment issues associated with consolidation of,
and/or changes in business operations; managing the integration of existing and
acquired companies; risks and uncertainties associated with existing or future
vendor relationships; and general economic conditions. Certain additional risks
and uncertainties are set forth in IKON's 1999 Annual Report on Form 10-K/A
filed with the Securities and Exchange Commission. As a consequence of these and
other risks and uncertainties, IKON's current plans, anticipated actions and
future financial condition and results may differ materially from those
expressed in any forward-looking statements.
# # #
<PAGE>
<TABLE>
<CAPTION>
IKON Office Solutions, Inc. Exhibit 99
- ---------------------------
FINANCIAL SUMMARY (in thousands, except earnings per share)
Second Quarter Fiscal
----------------------------------
2000 1999 % Change
----------------- ------------- ---------------
Revenues
<S> <C> <C> <C>
Net sales $ 727,929 $ 720,062 1.1 %
Service and rentals 571,329 585,662 (2.4)
Finance income 81,070 66,926 21.1
- ---------------------------------------------------------------------------------------------------
1,380,328 1,372,650 0.6
- ---------------------------------------------------------------------------------------------------
Costs and Expenses
Cost of goods sold 484,074 492,363 (1.7)
Service and rental costs 353,831 342,832 3.2
Finance interest expense 39,508 29,306 34.8
Selling and administrative 424,559 453,888 (6.5)
- ---------------------------------------------------------------------------------------------------
1,301,972 1,318,389 (1.2)
- ---------------------------------------------------------------------------------------------------
Operating income 78,356 54,261
Interest expense 17,626 18,995 (7.2)
- ---------------------------------------------------------------------------------------------------
Income before income taxes 60,730 35,266
Income taxes 25,877 12,399
- ---------------------------------------------------------------------------------------------------
Net income $ 34,853 $ 22,867
================= =============
Basic Earnings Per Common Share $0.23 $0.15
================= =============
Diluted Earnings Per Common Share $0.23 $0.15
================= =============
Weighted Average Common Shares Outstanding, Basic 149,297 148,601
================= =============
Weighted Average Common Shares Outstanding, Diluted 149,592 148,870
================= =============
Operations Analysis:
Gross profit %, net sales 33.5% 31.6%
Gross profit %, service and rentals 38.1% 41.5%
Gross profit %, finance subsidiaries 51.3% 56.2%
Total gross profit % 36.4% 37.0%
Selling and administrative as a % of revenue 30.8% 33.1%
Operating income as a % of revenue 5.7% 4.0%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IKON Office Solutions, Inc. Exhibit 99
- ---------------------------
FINANCIAL SUMMARY (in thousands, except earnings per share)
EXCLUDING SPECIAL ITEMS
Second Quarter Fiscal
-------------------------------
2000 1999 % Change
------------- ------------- ---------------
Revenues
<S> <C> <C> <C>
Net sales $ 727,929 $ 720,062 1.1 %
Service and rentals 571,329 585,662 (2.4)
Finance income 81,070 66,926 21.1
- --------------------------------------------------------------------------------------------------
1,380,328 1,372,650 0.6
- --------------------------------------------------------------------------------------------------
Costs and Expenses
Cost of goods sold 484,074 492,363 (1.7)
Service and rental costs 353,831 342,832 3.2
Finance interest expense 39,508 29,306 34.8
Selling and administrative 441,559 453,888 (2.7)
- --------------------------------------------------------------------------------------------------
1,318,972 * 1,318,389 0.0
- --------------------------------------------------------------------------------------------------
Operating income 61,356 54,261
Interest expense 17,626 18,995 (7.2)
- --------------------------------------------------------------------------------------------------
Income before taxes 43,730 35,266
Income taxes 18,387 12,399
- --------------------------------------------------------------------------------------------------
Net income $ 25,343 $ 22,867
============= =============
Basic Earnings Per Common Share $0.17 $0.15
============= =============
Diluted Earnings Per Common Share $0.17 $0.15
============= =============
Weighted Average Common Shares Outstanding, Basic 149,297 148,601
============= =============
Weighted Average Common Shares Outstanding, Diluted 149,592 148,870
============= =============
Operations Analysis:
Gross profit %, net sales 33.5% 31.6%
Gross profit %, service and rentals 38.1% 41.5%
Gross profit %, finance subsidiaries 51.3% 56.2%
Total gross profit % 36.4% 37.0%
Selling and administrative as a % of revenue 32.0% 33.1%
Operating income as a % of revenue 4.4% 4.0%
</TABLE>
* Excludes $17,000 of shareholder litigation insurance proceeds.
This information is provided for additional analysis and is not intended to be a
presentation in accordance with generally accepted accounting principles.
<PAGE>
<TABLE>
<CAPTION>
IKON Office Solutions, Inc. Exhibit 99
- ---------------------------
FINANCIAL SUMMARY (in thousands, except earnings per share)
Year To Date Fiscal
-------------------------------
2000 1999 % Change
------------- ------------- ---------------
Revenues
<S> <C> <C> <C>
Net sales $ 1,396,411 $ 1,427,781 (2.2)%
Service and rentals 1,154,250 1,186,921 (2.8)
Finance income 162,167 154,365 5.1
- --------------------------------------------------------------------------------------------------
2,712,828 2,769,067 (2.0)
- --------------------------------------------------------------------------------------------------
Costs and Expenses
Cost of goods sold 935,166 964,109 (3.0)
Service and rental costs 699,269 692,713 0.9
Finance interest expense 78,960 61,986 27.4
Selling and administrative 862,782 922,851 (6.5)
Restructuring and asset impairment charge 105,340
- --------------------------------------------------------------------------------------------------
2,681,517 2,641,659 1.5
- --------------------------------------------------------------------------------------------------
Operating income 31,311 127,408
Interest expense 33,620 38,542 (12.8)
- --------------------------------------------------------------------------------------------------
(Loss) income before income taxes (2,309) 88,866
Income taxes 18,474 37,323
- --------------------------------------------------------------------------------------------------
Net (loss) income $ (20,783) $ 51,543
============= =============
Basic (Loss) Earnings Per Common Share ($0.14) $0.35
============= =============
Diluted (Loss) Earnings Per Common Share ($0.14) $0.35
============= =============
Weighted Average Common Shares Outstanding, Basic 149,283 148,468
============= =============
Weighted Average Common Shares Outstanding, Diluted 149,283 148,882
============= =============
Operations Analysis:
Gross profit %, net sales 33.0% 32.5%
Gross profit %, service and rentals 39.4% 41.6%
Gross profit %, finance subsidiaries 51.3% 59.8%
Total gross profit % 36.8% 37.9%
Selling and administrative as a % of revenue 31.8% 33.3%
Operating income as a % of revenue 1.2% 4.6%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IKON Office Solutions, Inc. Exhibit 99
- ---------------------------
FINANCIAL SUMMARY (in thousands, except earnings per share)
EXCLUDING SPECIAL ITEMS
Year To Date Fiscal
-------------------------------
2000 1999 % Change
------------- ------------- ---------------
Revenues
<S> <C> <C> <C>
Net sales $ 1,396,411 $ 1,427,781 (2.2)%
Service and rentals 1,154,250 1,186,921 (2.8)
Finance income 162,167 140,032 15.8
- --------------------------------------------------------------------------------------------------
2,712,828 2,754,734 ** (1.5)
- --------------------------------------------------------------------------------------------------
Costs and Expenses
Cost of goods sold 935,166 964,109 (3.0)
Service and rental costs 699,269 692,713 0.9
Finance interest expense 78,960 61,986 27.4
Selling and administrative 879,782 922,851 (4.7)
- --------------------------------------------------------------------------------------------------
2,593,177 * 2,641,659 (1.8)
- --------------------------------------------------------------------------------------------------
Operating income 119,651 113,075
Interest expense 33,620 38,542 (12.8)
- --------------------------------------------------------------------------------------------------
Income before taxes 86,031 74,533
Income taxes 37,845 31,590
- --------------------------------------------------------------------------------------------------
Net income $ 48,186 $ 42,943
============= =============
Basic Earnings Per Common Share $0.32 $0.29
============= =============
Diluted Earnings Per Common Share $0.32 $0.29
============= =============
Weighted Average Common Shares Outstanding, Basic 149,283 148,468
============= =============
Weighted Average Common Shares Outstanding, Diluted 149,513 *** 148,882
============= =============
Operations Analysis:
Gross profit %, net sales 33.0% 32.5%
Gross profit %, service and rentals 39.4% 41.6%
Gross profit %, finance subsidiaries 51.3% 55.7%
Total gross profit % 36.8% 37.6%
Selling and administrative as a % of revenue 32.4% 33.5%
Operating income as a % of revenue 4.4% 4.1%
</TABLE>
* Excludes $17,000 of shareholder litigation insurance proceeds and $105,340
restructuring and asset impairment charge
** Excludes $14,333 gain on asset securitization
*** As a result of exclusion items, shares that were previously excluded
because of a net loss, are now included in the diluted earnings per share
calculation
This information is provided for additional analysis and is not intended to be a
presentation in accordance with generally accepted accounting principles.
<PAGE>
<TABLE>
<CAPTION>
IKON Office Solutions, Inc. Exhibit 99
- ---------------------------
FINANCIAL SUMMARY (in thousands, except earnings per share)
Second Quarter First Quarter
Fiscal Fiscal
2000 2000 % Change
------------- ------------- ---------------
Revenues
<S> <C> <C> <C>
Net sales $ 727,929 $ 668,482 8.9 %
Service and rentals 571,329 582,921 (2.0)
Finance income 81,070 81,097 0.0
- --------------------------------------------------------------------------------------------------
1,380,328 1,332,500 3.6
- --------------------------------------------------------------------------------------------------
Costs and Expenses
Cost of goods sold 484,074 451,092 7.3
Service and rental costs 353,831 345,438 2.4
Finance interest expense 39,508 39,452 0.1
Selling and administrative 424,559 438,223 (3.1)
Restructuring and asset impairment charge 105,340
- --------------------------------------------------------------------------------------------------
1,301,972 1,379,545 (5.6)
- --------------------------------------------------------------------------------------------------
Operating income (loss) 78,356 (47,045)
Interest expense 17,626 15,994 10.2
- --------------------------------------------------------------------------------------------------
Income (loss) before income taxes (benefit) 60,730 (63,039)
Income taxes (benefit) 25,877 (7,403)
- --------------------------------------------------------------------------------------------------
Net income (loss) $ 34,853 $ (55,636)
============= =============
Basic Earnings (Loss) Per Common Share $0.23 ($0.37)
============= =============
Diluted Earnings (Loss) Per Common Share $0.23 ($0.37)
============= =============
Weighted Average Common Shares Outstanding, Basic 149,297 149,279
============= =============
Weighted Average Common Shares Outstanding, Diluted 149,592 149,279
============= =============
Operations Analysis:
Gross profit %, net sales 33.5% 32.5%
Gross profit %, service and rentals 38.1% 40.7%
Gross profit %, finance subsidiaries 51.3% 51.4%
Total gross profit % 36.4% 37.3%
Selling and administrative as a % of revenue 30.8% 32.9%
Operating income (loss) as a % of revenue 5.7% (3.5%)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IKON Office Solutions, Inc. Exhibit 99
- ---------------------------
FINANCIAL SUMMARY (in thousands, except earnings per share)
EXCLUDING SPECIAL ITEMS
Second Quarter First Quarter
Fiscal Fiscal
2000 2000 % Change
------------- ------------- ---------------
Revenues
<S> <C> <C> <C>
Net sales $ 727,929 $ 668,482 8.9 %
Service and rentals 571,329 582,921 (2.0)
Finance income 81,070 81,097 0.0
- --------------------------------------------------------------------------------------------------
1,380,328 1,332,500 3.6
- --------------------------------------------------------------------------------------------------
Costs and Expenses
Cost of goods sold 484,074 451,092 7.3
Service and rental costs 353,831 345,438 2.4
Finance interest expense 39,508 39,452 0.1
Selling and administrative 441,559 438,223 0.8
- --------------------------------------------------------------------------------------------------
1,318,972 * 1,274,205 ** 3.5
- --------------------------------------------------------------------------------------------------
Operating income 61,356 58,295
Interest expense 17,626 15,994 10.2
- --------------------------------------------------------------------------------------------------
Income before taxes 43,730 42,301
Income taxes 18,387 19,458
- --------------------------------------------------------------------------------------------------
Net income $ 25,343 $ 22,843
============= =============
Basic Earnings Per Common Share $0.17 $0.15
============= =============
Diluted Earnings Per Common Share $0.17 $0.15
============= =============
Weighted Average Common Shares Outstanding, Basic 149,297 149,279
============= =============
Weighted Average Common Shares Outstanding, Diluted 149,592 149,443 ***
============= =============
Operations Analysis:
Gross profit %, net sales 33.5% 32.5%
Gross profit %, service and rentals 38.1% 40.7%
Gross profit %, finance subsidiaries 51.3% 51.4%
Total gross profit % 36.4% 37.3%
Selling and administrative as a % of revenue 32.0% 32.9%
Operating income as a % of revenue 4.4% 4.4%
</TABLE>
* Excludes $17,000 of shareholder litigation insurance proceeds.
** Excludes $105,340 of restructuring and asset impairment charge.
*** As a result of exclusion items, shares that were previously excluded
because of a net loss, are now included in the diluted earnings per share
calculation
This information is provided for additional analysis and is not intended to be a
presentation in accordance with generally accepted accounting principles.
Exhibit 99.1
Contacts:
Veronica L. Rosa Steven K. Eck
Investor Relations Media Relations
610-408-7196 610-408-7295
[email protected] [email protected]
- -------------- -------------
IKON BOARD NAMES CEO JAMES J. FORESE
TO ADDITIONAL POST OF CHAIRMAN
Valley Forge, Pennsylvania - April 26, 2000 - IKON Office Solutions (NYSE: IKN)
today announced that its Board of Directors has elected James J. Forese,
President and Chief Executive Officer, to the additional position of Chairman of
the Board, effective May 1, 2000.
Mr. Forese succeeds Richard A. Jalkut, who has served as Non-Executive Chairman
of the Board since July 1998 when Mr. Forese was appointed President and CEO.
The Board named Mr. Jalkut as Lead Independent Director.
Mr. Jalkut said, "Since he assumed executive leadership of IKON, Jim has made
good on his commitment to take all necessary actions in the best interests of
our shareholders to meet the challenges facing the Company and to improve our
performance. He has done an outstanding job, moving quickly to put a strong
management team in place, cut costs, improve productivity, and strengthen
discipline throughout the Company. Because of Jim's strategic insight and
decisive management, IKON is now poised to take advantage of the many growth
opportunities in the industry, and it is clear to IKON's Board that
consolidating corporate leadership in his hands at this time is the right step
to take."
"I am grateful to the Board for this expression of its confidence in me and my
management team," said Mr. Forese. "I especially want to give credit for the
Company's progress to date to all of IKON's employees who have worked hard to
improve the Company's performance, and I am excited about continuing to lead the
Company as we take advantage of the growth opportunities in front of us," he
stated.
"I also want to thank Dick Jalkut for his leadership on the Board during a
period of significant challenges facing our Company. He has made a strong
contribution to our efforts to put IKON on a path for increased growth,
profitability and enhanced value for our shareholders. We are fortunate to have
his continued active participation as Lead Independent Director," Mr. Forese
continued.
<PAGE>
Prior to assuming the position of President and CEO, Mr. Forese, 64, served as
Executive Vice President and President of International Operations for IKON from
January 1997 to July 1998. He was Executive Vice President and Chief Operating
Officer of Alco Standard, IKON's predecessor company, during 1996. Prior to
joining IKON, Mr. Forese spent 36 years with IBM Corporation in numerous
executive positions.
Mr. Forese serves on the Board of Directors of American Management Systems and
NUI Corporation. He holds a Bachelor's degree from Rensselaer Polytechnic
Institute and a Master's degree from the Massachusetts Institute of Technology.
IKON Office Solutions (www.ikon.com) is one of the world's leading providers of
products and services that help businesses communicate. IKON provides customers
with total business solutions for every office, production and outsourcing need,
including copiers and printers, color solutions, distributed printing,
facilities management, imaging and legal outsourcing solutions, as well as
network design and consulting, application development and technology training.
With fiscal 1999 revenues of $5.5 billion, IKON has approximately 900 locations
worldwide including the United States, Canada, Mexico, the United Kingdom,
France, Germany, Ireland, and Denmark.
This news release includes information which may constitute forward-looking
statements within the meaning of the federal securities laws. Although IKON
believes the expectations contained in such forward-looking statements are
reasonable, it can give no assurances that such expectations will prove correct.
Such forward-looking statements are based upon management's current plans or
expectations and are subject to a number of risks and uncertainties, including,
but not limited to, risks and uncertainties relating to conducting operations in
a competitive environment and a changing industry; delays, difficulties,
management transitions and employment issues associated with consolidation of,
and/or changes in business operations; managing the integration of existing and
acquired companies; risks and uncertainties associated with existing or future
vendor relationships; and general economic conditions. Certain additional risks
and uncertainties are set forth in IKON's 1999 Annual Report on Form 10-K/A
filed with the Securities and Exchange Commission. As a consequence of these and
other risks and uncertainties, IKON's current plans, anticipated actions and
future financial condition and results may differ materially from those
expressed in any forward-looking statements.
# # #
