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):
July 29, 1997
KANSAS CITY SOUTHERN INDUSTRIES, INC.
(Exact name of company as specified in its charter)
DELAWARE 1-4717 44-0663509
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification Number)
114 West 11th Street, Kansas City, Missouri 64105
(Address of principal executive offices) (Zip Code)
Company's telephone number, including area code:
(816) 983 - 1303
Not Applicable
(Former name or former address if changed since last report)
<PAGE>
Item 5. Other Events
On July 29, 1997, the Board of Directors of Kansas City Southern Industries,
Inc. ("Company") authorized a 3-for-1 split in the Company's common stock
effected in the form of a stock dividend. The Board of Directors also voted
to increase the quarterly dividend 20% to $0.12 per share (on a pre-split
basis). Both dividends are payable on September 16, 1997 to stockholders of
record as of August 25, 1997. Readers should also refer to the July 29, 1997
Press Release attached hereto as Exhibit 99.1 for further information.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit No. Document
(99) Additional Exhibits
99.1 Press Release issued by Kansas City
Southern Industries, Inc. dated July
29, 1997, entitled, "Kansas City
Southern Industries, Inc. Announces
3-for-1 Stock Split and 20% Increase
in Annual Dividends," is attached
hereto as Exhibit 99.1
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Kansas City Southern Industries, Inc.
Date: August 1, 1997 By: /s/ Joseph D. Monello
Joseph D. Monello
Vice President and Chief Financial Officer
(Principal Financial Officer)
EXHIBIT 99.1
Contact: KCSI
William H. Galligan Kansas City Southern Industries, Inc.
Asst. Vice President-Corporate Affairs 114 West 11th Street
The Kansas City Southern Railway Co. Kansas City, Missouri 64105
(816) 983-1551
NYSE Symbol: KSU
Release No.: 1997-14 Date: July 29, 1997
NEWS RELEASE
KANSAS CITY SOUTHERN INDUSTRIES, INC. ANNOUNCES
3-FOR-1 STOCK SPLIT AND 20% INCREASE IN ANNUAL DIVIDENDS
(Page 1 of 2)
The Board of Directors of Kansas City Southern Industries, Inc. (NYSE-KSU)
today authorized a 3-for-1 split effective in the form of a stock dividend in
the Company's common stock as of July 29, 1997 to stockholders of record as of
August 25, 1997 and payable on September 16, 1997. New certificates will be
issued no later than September 16, 1997. The Board also declared a cash
dividend of $0.12 per share on the Company's outstanding common stock (on a
pre-split basis) also payable on September 16, 1997 to stockholders of record
as of August 25, 1997.
Landon H. Rowland, Chairman, President and Chief Executive Officer, said,
"The Board has approved this 3-for-1 split and 20% increase in annual dividend
rate in reaction to the value that has been added to our two business segments:
Financial Asset Management and Transportation. Since the first of the year,
our Kansas City Southern Railway has acquired extremely valuable new holdings
in both Mexico and the United States. These acquisitions give the
Transportation segment a strategic north-south rail corridor linking the U.S.
and Mexican industrial heartlands. As a result, we now believe we are
operating part of the most valuable rail property for future growth in North
America."
"Likewise, assets under management of our Financial Asset Management segment,
which includes the Janus and Berger mutual funds, have grown from $49.9
billion to $69.7 billion since the beginning of the year. Mutual Funds are the
fastest growing investment and saving products for individual investors in the
world. As this trend becomes even more global, we see growing value for our
shareholders," said Rowland.
Kansas City Southern and Transportacion Ferroviaria Mexicana ("TFM") recently
completed bond financing for their investment in the Northeast Mexican Rail
Line. TFM, a joint venture created between KCSI and Transportacion Maritima
Mexicana, S.A. de C.V. (NYSE: TMM) now operates a 50-year concession of the
privatized Northeast Line of FNM, the Mexican national railroad. TFM took
over management of the Mexican railroad on June 23, which followed a very
successful financing of the acquisition of TFM.
"Over-subscription of the bond offering used to finance our acquisition of TFM
shows that the financial community understands what we've known since we made
our bid -- that this rail system has enormous future revenue growth potential
and is the crown jewel of the Mexican rail system," said Mike Haverty, a
Director of KCSI and President of the Kansas City Southern Railway Company.
"Major improvements in the operation of the Mexican railroad have already been
achieved and our customers tell us they like what they see."
NEWS RELEASE
KANSAS CITY SOUTHERN INDUSTRIES, INC. ANNOUNCES
3-FOR-1 STOCK SPLIT AND 20% INCREASE IN ANNUAL DIVIDENDS
(Page 2 of 2)
"Growth of our assets under management at Janus and Berger has been beyond our
expectations since the start of 1997," said Joseph Monello, Chief Financial
Officer of KCSI, "and this acceleration of growth is bringing extraordinary
value to our Financial Asset Management operations. Given global trends, we
expect this trend to continue and that is holding great promise for our
shareholders."
Kansas City Southern Industries (as of June 30, 1997) has over 35,725,229
shares outstanding and after the split will have over 107,175,687 million
shares outstanding.
The Board of Directors also declared a regular quarterly dividend of $0.25 per
share on the outstanding preferred stock. This dividend is payable on
October 7, 1997 to preferred stockholders of record at the close of business
on September 19, 1997.
.......... The End
