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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: September 24, 1997 (September 15, 1997)
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Commission file number 1-11803
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AMERICAN PAD & PAPER COMPANY
(Exact name of registrant as specified in its charter)
Delaware 04-3164298
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
17304 Preston Road, Suite 700, Dallas, TX 75252-5613
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 733-6200
Commission file number 333-3006
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AMERICAN PAD & PAPER COMPANY OF DELAWARE, INC.
(Exact name of registrant as specified in its charter)
Delaware 25-1512956
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
17304 Preston Road, Suite 700, Dallas, TX 75252-5613
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 733-6200
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Item 5. Other Events.
On September 15, 1997, American Pad & Paper Company (the "Company") issued
a press release stating that it expects to report significantly lower than
expected revenues and earnings for the third and fourth quarters of 1997. That
press release is incorporated herein as Exhibit 99.1.
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Item 7. Exhibits
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99.1 Press release by the Company dated September 15, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned hereunto duly authorized.
American Pad & Paper Company
American Pad & Paper Company of Delaware, Inc.
/s/ William W. Solomon, Jr. September 24, 1997
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William W. Solomon, Jr. Date
Chief Accounting Officer
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Exhibit
Number Index to Exhibits
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Description
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99.1 Press release by the company dated September 15, 1997
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Exhibit 99.1
CONTACT: Kevin W. McAleer
American Pad & Paper Co.
(972) 733-5421
FOR IMMEDIATE RELEASE
Robert P. Jones/Stacy Lipschitz
Stan Froelich - Press
Morgen-Walke Associates
(212) 850-5600
AMERICAN PAD AND PAPER COMPANY COMMENTS ON OUTLOOK
FOR 1997 SECOND HALF
DALLAS, Texas, September 15, 1997 -- American Pad & Paper Company
(NYSE:AGP) said today that it expects to report significantly lower than
expected revenues and earnings for the third and fourth quarters of 1997.
The Ampad Division, which produces writing pads, filing supplies,
envelopes and machine paper products, recently experienced lower than
anticipated volume as some mass merchant and superstore customers sharply
reduced inventories. In addition, the Williamhouse Division, which manufactures
envelopes, is performing below management's expectations due to softer demand
and highly competitive pricing.
Primarily as a result of these factors, American Pad & Paper expects
to report net sales in the range of $165 million to $170 million and earnings
per share of $0.05 to $0.06 for the third quarter ending September 30, 1997.
Given prevailing business conditions, the Company currently expects net sales
for 1997 to be up by approximately 12% to 15% over 1996 net sales of $584
million, and earnings to be between $0.48 and $0.52 per share for the full year
1997.
"We were not anticipating the sharp and sudden downturn in business in
the second half of 1997," said Chairman and Chief Executive Officer Charles G.
Hanson III.
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"We continue to believe that once the current inventories held by
distributors and customers are worked off, the long-term dynamics of our
industry, and in particular the consolidation of office supply retailers, will
favor large, cost-efficient, broad-line suppliers such as American Pad &
Paper."
"We have begun to take appropriate actions to address these
developments," said Mr. Hanson. "Key steps include realignment of inventory and
manufacturing levels and investment in key cost improvement initiatives. We
plan to continue to concentrate on expanding our distribution base with
existing and new customers."
American Pad & Paper Co., which invented the legal pad in 1888, is a
leading manufacturer and marketer of paper-based office products in North
America. In its 21 U.S. facilities, the Company manufactures and distributes
writing pads, file folders, machine papers, envelopes and other office
products. Name brands include: Ampad, Century, Embassy, Gold Fibre, Huxley,
Karolton, Kent, Peel & Seel, SCM, Williamhouse and World Fibre.
This release contains forward-looking statements relating to future
financial results. Actual results may differ as a result of factors over which
the Company has no control, including the strength of domestic and foreign
economies, sales declines or slower than anticipated sales growth, price and
product competition and increases in raw material costs. Additional information
which could affect the Company's financial results is included in the Company's
prospectus on file with the Securities and Exchange Commission.
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