SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) June 9, 1997
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LCS INDUSTRIES, INC.
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(Exact name of registrant as specified in charter)
Delaware 0-12329 13-2648333
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(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification no.)
120 Brighton Road, Clifton, New Jersey 07012-1694
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (201) 778-5588
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On June 9, 1997, LCS Industries, Inc. (the "Company") decided to take a
non-recurring charge of approximately $1,000,000 to net income for the third
quarter ending June 30, 1997 as the result of its decision to write off the
entire investment in McIntyre and King, Ltd., a United Kingdom-based
telemarketing, fulfillment and mailing services company acquired in April, 1997.
In its June 9, 1997 press release relating to such action (the "Press
Release"), Arnold J. Scheine, President and Chief Executive Officer of the
Company, is quoted as saying: "The decision to write off our investment in
McIntyre and King after approximately two months ownership is disappointing, but
our Board of Directors unanimously decided it was effectively the most prudent
course when it became evident that any future involvement would result in
unexpected losses and unacceptable demands on management time."
Upon advice of counsel, the Company intends to vigorously pursue any
and all recourse it may have against the prior owners of McIntyre and King. The
Press Release further quotes Mr. Scheine as saying: "This experience, while
extremely unfortunate, in no way deters us from our program to seek allied
businesses in the direct marketing field. The action should have only a slight
impact on our financial position, which with cash items of approximately
$26,000,000, remains strong. Our overall business continues to do very well."
This filing contains certain forward-looking statements and information
relating to the Company that are based on the beliefs of Company management as
well as assumptions made by and information currently available to Company
management. Such statements reflect the current views of the Company with
respect to future events and are subject to certain risks, uncertainties and
assumptions, including the risk that the Company may incur further charges and
the assumption that lengthy and extensive litigation will not be required in
connection with severing its relationship with McIntyre and King. The Company
intends to update these forward-looking statements.
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SIGNATURES
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.
LCS INDUSTRIES, INC.
Dated: June 23, 1997 By: /s/ PAT R. FRUSTACI
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Pat R. Frustaci
Vice President--Finance
