<PAGE> 1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
UNITED STATES
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: MARCH 3, 1998
DATE OF EARLIEST EVENT REPORTED: FEBRUARY 10, 1998
PRIMARK CORPORATION
(Exact name of registrant as specified in its charter)
1-8260
(Commission File Number)
MICHIGAN 38-2383282
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1000 WINTER STREET, SUITE 4300N, WALTHAM, MA 02154
(Address of principal executive offices) (Zip Code)
617-466-6611
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE> 2
ITEM 5. OTHER EVENTS
On February 10, 1998, Primark reported financial results for the year ending
December 31, 1997. Including the results of the Company's TASC, Inc. unit,
income from continuing operations for 1997 was $22.3 million or $0.80 per share,
compared to 1996 results of $25.3 million or $0.94 per share. The full year
results reflect $0.22 per share of restructuring charges recorded through June
of 1997. Income from continuing operations for the fourth quarter was $9.0
million or $0.32 per share compared to 1996 fourth quarter income from
continuing operations of $5.7 million or $0.20 per share.
Primark reported revenues of $218.3 million and $835.8 million for the three and
twelve month periods, representing a 19.7% increase over the same quarter last
year and a 26.5% increase over 1996's full year results. These high growth rates
reflect positive impacts from acquisitions within the past twelve months,
increased demand from the financial information market and strong revenues from
the Company's information technology businesses.
Primark stated that had the financial results of TASC, together with its
proportional share of interest costs, been classified as discontinued
operations, revenues for 1997 would have been reported as $397.9 million for the
year and $103.1 million for the quarter, a 43.6% and 22.4% increase over the
1996 comparable periods. Likewise, income from continuing operations for 1997
would have been $7.0 million or $0.25 per share compared to restated 1996
results of $12.5 million or $0.46 per share, with much of the decline due to
DAFSA. The fourth quarter, again excluding TASC and the proportional interest
costs, would have reflected income from continuing operations of $5.2 million or
$0.19 per share compared to restated 1996 results of $3.3 million or $0.12 per
share.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
FINANCIAL STATEMENTS
Financial statements are not required and therefore have not been filed with
this Form 8-K.
EXHIBITS
Exhibit
Number Description
- -------- -----------
99.1 Primark Corporation's December 31, 1997 Unaudited Condensed
Consolidated Statements of Income and Financial Position (including
the operations of TASC) as reported in its February 10, 1998 Press
Release.
99.2 Primark Corporation's December 31, 1997 Unaudited Condensed
Consolidated Statements of Income (excluding the operations of TASC)
as reported in its February 10, 1998 Press Release.
<PAGE> 3
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.
PRIMARK CORPORATION
Date: March 3, 1998 By: /s/ STEPHEN H. CURRAN
-------------------------
Stephen H. Curran
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
<PAGE> 1
EXHIBIT 99.1
- --------------------------------------------------------------------------------
Primark Corporation (Including the Operations of TASC)
Condensed Consolidated Statements of Income (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31 December 31
1997 1996 1997 1996
-------- -------- -------- --------
(Thousands Except Per Share Amounts)
<S> <C> <C> <C> <C>
Operating revenues $218,346 $182,441 $835,814 $660,763
Cost of services 122,781 104,141 465,611 360,103
Selling, general and administrative 56,982 51,790 236,887 198,367
Restructuring charge - - 6,800 -
-------- -------- -------- --------
EBITDA (*) 38,583 26,510 126,516 102,293
Depreciation and amortization 15,923 12,684 58,967 42,150
-------- -------- -------- --------
OPERATING INCOME 22,660 13,826 67,549 60,143
Investment income 884 66 3,672 4,045
Interest expense (6,953) (5,655) (26,762) (20,259)
Foreign currency gain (loss) (495) 377 1,832 1,864
Other income (deductions) - net (620) (559) 1,026 (1,294)
Income tax expense (6,520) (2,360) (25,057) (19,219)
-------- -------- -------- --------
INCOME FROM CONTINUING OPERATIONS $ 8,956 $ 5,695 $ 22,260 $ 25,280
Discontinued operations (38) 1,035 (590) 11,828
Extraordinary item - Loss on debt extinguishment - - (1,955) -
-------- -------- -------- --------
Net Income 8,918 6,730 19,715 37,108
Dividends on preferred stock - - - (359)
-------- -------- -------- --------
Net income applicable to common stock $ 8,918 $ 6,730 $ 19,715 $ 36,749
======== ======== ======== ========
EARNINGS PER COMMON SHARE
Income from continuing operations $ 0.34 $ 0.21 $ 0.84 $ 1.00
Net Income $ 0.34 $ 0.25 $ 0.75 $ 1.48
Weighted average common shares outstanding 26,151 26,517 26,348 24,813
EARNINGS PER COMMON SHARE - ASSUMING DILUTION
Income from continuing operations $ 0.32 $ 0.20 $ 0.80 $ 0.94
Net Income $ 0.32 $ 0.24 $ 0.71 $ 1.38
Weighted common shares outstanding - assuming dilution 27,939 28,064 27,944 26,571
</TABLE>
(*) EBITDA represents earnings before interest, taxes, depreciation and
amortization.
- --------------------------------------------------------------------------------
Primark Corporation (Including the Operations of TASC)
Condensed Consolidated Statements of Financial Position (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31 December 31
1997 1996
---------- ----------
(Thousands of Dollars)
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 12,948 $ 25,385
Accounts receivable - net 180,780 162,277
Other current assets 81,343 53,820
Goodwill and other intangibles - net 746,398 665,560
Property, plant & equipment 58,549 53,417
Other noncurrent assets 9,211 11,124
---------- ----------
$1,089,229 $ 971,583
========== ==========
LIABILITIES AND COMMON SHAREHOLDERS' EQUITY
Notes payable, current portion of long-term debt
and capital lease obligations $ 11,301 $ 6,518
Accounts payable and other current liabilities 236,991 210,271
Long-term debt, including capital lease obligations 331,260 241,822
Other noncurrent liabilities 38,515 36,755
Common shareholders' equity 471,162 476,217
---------- ----------
$1,089,229 $ 971,583
========== ==========
</TABLE>
Page 1
<PAGE> 1
EXHIBIT 99.2
- --------------------------------------------------------------------------------
Primark Corporation (Excluding the Operations of TASC)
Condensed Consolidated Statements of Income (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31 December 31
1997 1996 1997 1996
--------- --------- --------- ---------
(Thousands Except Per Share Amounts)
<S> <C> <C> <C> <C>
Operating revenues $ 103,149 $ 84,262 $ 397,875 $ 277,063
Cost of services 40,544 39,309 157,327 104,479
Selling, general and administrative 35,352 28,702 151,559 111,463
Restructuring charge - - 6,800 -
--------- --------- --------- ---------
EBITDA (*) 27,253 16,251 82,189 61,121
Depreciation and amortization 13,087 10,318 50,205 33,282
--------- --------- --------- ---------
OPERATING INCOME 14,166 5,933 31,984 27,839
Investment income 215 479 1,085 2,675
Interest expense (4,181) (3,637) (15,986) (12,468)
Foreign currency gain (loss) (494) 350 1,831 1,836
Other income (deductions) - net (622) 38 1,039 66
Income tax (expense)/benefit (3,908) 185 (12,963) (7,432)
--------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS $ 5,176 $ 3,348 $ 6,990 $ 12,516
========= ========= ========= =========
EARNINGS PER COMMON SHARE (**)
Income from continuing operations $ 0.20 $ 0.13 $ 0.26 $ 0.49
Weighted average common shares outstanding 26,151 26,517 26,348 24,813
EARNINGS PER COMMON SHARE - ASSUMING DILUTION (**)
Income from continuing operations $ 0.19 $ 0.12 $ 0.25 $ 0.46
Common shares outstanding - assuming dilution 27,939 28,064 27,944 26,571
</TABLE>
(*) EBITDA represents earnings before interest, taxes, depreciation and
amortization.
(**) Earnings per common share for the year ended December 31, 1996 include
$359,000 of preferred stock dividends.
- --------------------------------------------------------------------------------
Page 1
