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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
AMERICAN BANKNOTE CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
DELAWARE
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(State or Other Jurisdiction of Incorporation)
1-3410 13-0460520
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(Commission File Number) (I.R.S. Employer Identification No.)
410 PARK AVENUE, NEW YORK, N.Y. 10022-4407
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(Address of Principal Executive Office) (Zip Code)
(212) 593-5700
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
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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 January 19,
1999.
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: //Patrick D. Reddy
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Patrick D. Reddy,
Vice President
Date: January 21, 1999
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EXHIBIT INDEX
Item No.
99.1 Press release of American Banknote Corporation dated January 19, 1999.
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EXHIBIT 99.1
American Banknote Corporation
410 Park Avenue
New York, New York 10022-4407
Contact: Jean Marie Young
Director - Investor Relations
(212) 593-5700
FOR IMMEDIATE RELEASE
AMERICAN BANKNOTE CORPORATION
TO RESTATE REVENUES FOR THE SECOND QUARTER OF 1998
AND NET INCOME FOR THE SECOND AND THIRD QUARTERS OF 1998
RELATING TO ITS FORMER HOLOGRAPHIC SUBSIDIARY
NEW YORK, January 19, 1999 - American Banknote Corporation (NYSE:ABN) announced
today that its former wholly-owned subsidiary, American Bank Note Holographics
(NYSE:ABH), which was sold effective July 20, 1998 in a public offering made the
following announcement:
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"American Bank Note Holographics announced today that its Audit Committee
has retained Kramer Levin Naftalis & Frankel LLP, as special legal counsel,
and Deloitte & Touche LLP, its auditors, to investigate certain
transactions during the second and third quarters of 1998 which resulted in
the inappropriate recognition of revenue during such quarters.
Based upon currently available information resulting from the in-progress
audit of the Company's financial statements, sales and net income of the
Company have been over-stated for the second and third quarters of 1998.
These over-statements may be material and will require restatements of the
Company's financial statements for such periods. Since the investigation is
in a preliminary stage, the Company cannot estimate the amount of any
adjustments or changes to its financial statements that will be required.
Revised financial statements will be issued upon completion of the
investigation. The Company indicated that the results of the investigation
could impact future results of operations. Additionally, based upon
available information, the Company expects that revenues and net income for
the fourth quarter of 1998 will be significantly lower than that of the
fourth quarter of 1997."
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American Banknote Corporation believes that, based upon currently available
information, the Holographics restatement will result in a decrease in operating
income of ABN for the second quarter of 1998 with a corresponding increase in
the gain on sale of subsidiary in the 1998 third quarter. Additionally, reported
revenues for the second quarter of 1998 will decrease as a result of this
restatement. Revised consolidated financial statements of ABN for the second and
third quarters of 1998 will be issued upon the completion of the investigation
by Holographics' Audit Committee, discussed above.
(more)
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Morris Weissman, Chairman and CEO, said "While this restatement does not involve
ongoing businesses at American Banknote Corporation, I am extremely disappointed
regarding the events at American Bank Note Holographics, and am committed to
resolving the situation as expeditiously as possible."
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.
Statements about future results made in this release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform act of 1995. These statements are based on current
expectations and the current economic environment. The Company cautions that
these statements are not guarantees of future performance. They involve a number
of risks and uncertainties that are difficult to predict. Actual results could
differ materially from those expressed or implied in the forward-looking
statements. Important assumptions and other important factors that could cause
actual results to differ materially from those in the forward-looking statements
are specified 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.
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