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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 24, 1997
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CALIBER SYSTEM, INC.
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(Exact name of registrant as specified in its charter)
Ohio 0-10716 34-1365496
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation Identification No.)
3560 W. Market Street, Akron, Ohio 44334-0459
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(Address of principal executive offices)
Registrant's telephone number, including area code (330) 665-5646
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Caliber System, Inc. Form 8-K
INFORMATION REQUIRED IN REPORT
ITEM 5. OTHER EVENTS
The Registrant's news release dated January 24, 1997, a copy of which is
attached hereto as Exhibit 99, is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits.
99 Caliber System, Inc. News Release dated January 24, 1997.
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 hereto duly authorized.
CALIBER SYSTEM, INC.
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REGISTRANT
Date: January 24, 1997 By: /s/ John E. Lynch
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John E. Lynch
Vice President, General Counsel
and Secretary
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EXHIBIT INDEX
EXHIBIT NO.
99 Caliber System, Inc. News Release dated January 24, 1997.
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Exhibit 99
CONTACT: R.M. ADAMOV
CALIBER SYSTEM, INC.
(330) 665-8894
FOR IMMEDIATE RELEASE
CALIBER SYSTEM ANNOUNCES YEAR END RESULTS
AKRON, OHIO, JANUARY 24, 1997 - Daniel J. Sullivan, Chairman of the Board,
President and CEO of Caliber System, Inc. (NYSE: CBB), today announced the
Company's 1996 results. Revenue for the year ended December 31, 1996 was $2.72
billion, an increase of 11% from the $2.45 billion realized in 1995. Income from
continuing operations for 1996 was $9.9 million, or $0.25 per share, compared to
$92.4 million, or $2.34 per share, for the prior year.
Revenue of $892.9 million for the fourth quarter ended December 31, 1996
represented an 11.5% increase over fourth quarter 1995 revenue of $801.2
million. Income from continuing operations for the fourth quarter of 1996
amounted to $2.0 million, or $0.05 per share, compared to income of $26.3
million, or $0.67 per share, in 1995.
"1996 was a difficult year for Caliber. Earnings were severely impacted by
poor operating results at Viking Freight and costs associated with the
consolidation of four regional companies into one superregional carrier.
Additionally, operating profits declined at RPS, the Company's small package
carrier, due primarily to slower than expected revenue growth," said Sullivan.
VIKING'S RESULTS
Viking reported revenue of $965.8 million for 1996, representing a 15.8%
increase over 1995 revenue of $834.1 million. Viking's operating loss for the
year amounted to $127.8 million as compared to a loss of $31.5 million last
year. The 1996 loss was due to significant one-time costs and operating
inefficiencies associated with the consolidation; pricing problems; and higher
fuel prices. Tonnage growth beyond planned levels also generated additional
expenses because of lower productivity, excessive overtime, hiring and training
of new employees, equipment rentals and purchased transportation.
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"As previously announced, a number of significant actions have been taken. We
have put new management in place at Viking. Steps being taken to reduce costs
include the closing of 30 terminals, elimination of approximately 1,500
positions and implementation of a wage freeze for Viking salaried employees. In
addition, studies by internal personnel and outside consultants are progressing
as we consider all options for Viking," stated Sullivan.
RPS RESULTS
For 1996, revenue at RPS was $1.34 billion, a 4.0% increase over 1995 levels.
Operating income amounted to $119.0 million in 1996 compared to $161.2 million
in 1995.
An aggressive pricing environment, coupled with modest retail sales in the
nondurable goods sector, negatively impacted RPS package growth during the year.
However, better than 95% on-time service, the best peak season delivery
performance in the company's history, contributed to improved revenue growth and
operating margins in the fourth quarter.
During 1996, RPS expanded its terminal and hub network to serve 100% of the
U.S. population, accomplishing its goal set eight years ago. Capacity was also
added in several next day markets increasing its Overnight Ground(SM) service
during the year to 45% of the nation's population.
ROBERTS EXPRESS AND CALIBER LOGISTICS REPORT STRONG REVENUE GROWTH
Roberts Express, the Company's expedited carrier, reported good year over year
revenue growth of 6%. At the same time, 1996 operating profits were up 8.3% over
1995 as margins improved. Roberts met its profit objective for the year.
Caliber Logistics realized annual gross revenue of $506.0 million, an increase
of 59% over 1995 levels. Logistics also improved operating margins over 1995.
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Revenue and earnings for the fourth quarter of 1996, with comparable figures for
1995, are as follows:
<TABLE>
<CAPTION>
Sixteen Weeks Ended
(Fourth Quarter)
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Dec. 31, 1996 Dec. 31, 1995
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(dollars in thousands, except per share data)
<S> <C> <C>
Revenue $ 892,941 $ 801,183
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Operating Income $ 13,177 $ 57,488
Other (Expense) Income, Net (4,749) 175
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Income from Continuing
Operations Before Income Taxes 8,428 57,663
Provision for Income Taxes 6,386 31,359
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Income from Continuing Operations 2,042 26,304
Loss from Discontinued Operations - (59,686)
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Net Income (Loss) $ 2,042 $ (33,382)
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Earnings (Loss) Per Share:
Continuing Operations $ .05 $ 0.67
Discontinued Operations - (1.52)
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Net Income (Loss) $ .05 $ (0.85)
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Average Shares Outstanding 39,421 39,463
</TABLE>
Revenue and earnings for 1996, with comparable figures for 1995, are as follows:
<TABLE>
<CAPTION>
Fifty-Two Weeks Ended
(Four Quarters)
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Dec. 31, 1996 Dec. 31, 1995
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(dollars in thousands, except per share data)
<S> <C> <C>
Revenue $2,718,142 $2,448,172
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Operating Income $ 32,996 $ 155,728
Other (Expense) Income, Net (10,316) 6,407
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Income from Continuing
Operations Before Income Taxes 22,680 162,135
Provision for Income Taxes 12,767 69,726
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Income from Continuing Operations 9,913 92,409
Loss from Discontinued Operations - (119,614)
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Net Income (Loss) $ 9,913 $ (27,205)
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Earnings (Loss) Per Share:
Continuing Operations $ 0.25 $ 2.34
Discontinued Operations - (3.03)
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Net Income (Loss) $ 0.25 $ (0.69)
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Average Shares Outstanding 39,484 39,459
</TABLE>
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Note: The Company operates on a 13 four-week period calendar with 12 weeks in
each of the first three quarters and 16 weeks in the fourth quarter.
This release contains forward-looking statements that are subject to risks and
uncertainties which could cause actual results to differ materially. These
risks and uncertainties are detailed from time to time in reports filed by the
Company with the Securities and Exchange Commission, including Forms 8-K, 10-Q
and 10-K.
Caliber System, Inc. is a leading, value-added provider of transportation,
logistics and related information services. Its operating units include RPS, a
business-to-business small package carrier; Viking Freight, a superregional
freight carrier; Caliber Logistics, a supplier of contract logistics services;
Roberts Express, a critical-shipment carrier, and Caliber Technology, a
provider of computer-based solutions for customers.
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