================================================================================
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): November 7, 1997
AMERICAN BANKNOTE CORPORATION
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
DELAWARE
- --------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation)
1-3410 13-0460520
- ------------------------------ ------------------------------------
(Commission File Number) (I.R.S. Employer Identification No.)
200 PARK AVENUE, NEW YORK, N.Y. 10166-4999
- ------------------------------------ -------------------------
(Address of Principal Executive Offices) (Zip Code)
(212) 557-9100
- --------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
================================================================================
<PAGE>
Item 5. Other Events
The information set forth in the press release issued by American Banknote
Corporation, attached hereto as Exhibit 99.1, is incorporated herein by
reference.
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits
(c) Exhibits
99.1 Press release of American Banknote Corporation dated
November 7, 1997.
<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 hereunto duly authorized.
AMERICAN BANKNOTE CORPORATION
By: /s/ Harvey J. Kesner
-----------------------------
Harvey J. Kesner,
Executive Vice President and
General Counsel
Date: November 7, 1997
2
<PAGE>
EXHIBIT INDEX
Item No.
99.1 Press release of American Banknote Corporation dated November 7, 1997.
3
<PAGE>
<PAGE>
EXHIBIT 99.1
American Banknote Corporation
200 Park Avenue
New York, New York 10166-4999
Contact: Jean Marie Young
Director Investor Relations
(212) 557-9100
AMERICAN BANKNOTE CORPORATION REPORTS
THIRD QUARTER RESULTS
NEW YORK, November 7, 1997 American Banknote Corporation (NYSE:ABN) today
reported earnings of $2.4 million, or $0.11 per share, on sales of $88.2
million for the quarter ended September 30, 1997, as compared to earnings of
$2.2 million, or $0.11 per share, on sales of $86.9 million for the same
period in 1996.
Earnings for the first nine months of 1997 were $4.7 million,
or $0.22 per share, on sales of $248.4 million, as compared to earnings of
$2.8 million, or $0.14 per share, on sales of $217.6 million for the same
period in 1996. Compared to the prior year, earnings per share increased 57%
while sales were up 14% for the first nine months.
After allowing for exchange rate differentials in Australia and Brazil,
operating income in the third quarter was $11.4 million compared to $12.5
million for the same period in 1996. For the first nine months of 1997,
operating income was $29.5 million versus $26.7 million for the comparable
1996 period, an increase of 10.5%.
Morris Weissman, Chairman and Chief Executive Officer, said, "We are delighted
with the new business won during the quarter, including the $14 million Indian
currency contract and the passport orders for Australia, Venezuela, and
Lebanon. Earnings and operating income would have been higher but for
exchange rate weakness in Australia and the Brazilian government's managed
devaluation of the Real against the U.S. dollar. Additionally, cost of goods
sold was impacted by higher fixed costs that have yet to be absorbed in
connection with the ramp up of the new plant in Sao Paulo."
On August 25, American Banknote completed the acquisition of its first
subsidiary in Europe, extending its global reach with operations now in the
United States, Brazil, Australia, New Zealand and France. The French Company,
Sati Group, will add to American Banknote's Printing Services & Document
Management group. Sati Group's check personalization, electronic printing and
document management business generated sales of over $20 million dollars in
1996. Mr. Weissman stated, "We've expanded our global presence to Europe
where we see exciting growth opportunities with the emergence of the European
Union. The acquisition further diversifies both our reach and revenue stream
geographically."
(more)
<PAGE>
2
American Banknote has elected to postpone the previously announced refinancing
of outstanding debt due to continued turbulence in the international markets.
The Company is currently evaluating alternative financing proposed by its
underwriters. Mr. Weissman commented, "We have always considered the
refinancing to be an opportunistic transaction. We will continue to review
financings that can enhance shareholder value."
American Banknote Corporation is a leading global full-service provider of
secure transaction solutions in carefully selected markets along three major
product groups: Transaction Cards & Systems, Printing Services & Document
Management, and Security Printing Solutions. A combined strategy of operating
along product lines and constant expansion of transaction activities worldwide
reflects the rapidly changing field of electronic commerce. Additionally,
American Banknote, via its Holographics subsidiary, is the world leader in
security for financial transaction cards, including VISA, MasterCard,
Discover, Diners Club International, and Europay.
This release contains forward-looking statements relating to future financial
results. Actual results may differ materially as a result of factors over
which the Company has no control. These risk factors and additional
information are included in the Company's annual report on Form 10-K and
quarterly reports on Form 10-Q on file with the Securities and Exchange
Commission.
(table follows)
<PAGE>
<PAGE>
AMERICAN BANKNOTE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Amounts in thousands, except share data)
Nine Months Ended Three Months Ended
September 30 September 30
1997 1996 1997 1996
Sales . . . . . . . . . . . . . $248,416 $217,560 $ 88,152 $86,879
Costs and expenses:
Cost of goods sold. . . . . . 166,263 142,793 58,435 54,223
Selling and administrative . 34,881 33,327 11,962 14,099
Depreciation and amortization 17,799 14,731 6,346 6,034
218,943 190,851 76,743 74,356
29,473 26,709 11,409 12,523
Other (expense) income:
Interest expense. . . . . . . (24,353) (20,124) (8,451) (7,483)
Foreign translation losses, net (122) (201) (15) (65)
Other, net. . . . . . . . . . . 2,519 711 860 331
(21,956) (19,614) (7,606) (7,217)
Income before taxes on income
and minority interest . . . . . 7,517 7,095 3,803 5,306
Taxes on income . . . . . 371 877 807 1,378
Income before minority interest . .7,146 6,218 2,996 3,928
Minority interest . . . . . . . . 2,458 3,427 564 1,700
Net Income . . . . . . . . . . $ 4,688 $ 2,791 $ 2,432 $ 2,228
Weighted average number of common
and common equivalent shares
outstanding . . . . . . . . . . 21,430 20,300 21,720 20,420
Net income per share. . . . . . $ .22 $ .14 $ .11 $ .11
