<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
C U R R E N T R E P O R T
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 21, 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.)
3925 Embassy Parkway, Akron, Ohio 44333
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(Address of principal executive offices)
Registrant's telephone number, including area code (330) 665-5646
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<PAGE> 2
Caliber System, Inc. Form 8-K
INFORMATION REQUIRED IN REPORT
Item 5. Other Events
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The Registrant's news release dated April 21, 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
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(c) Exhibits.
99 Caliber System, Inc. News Release dated April 21, 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: April 21, 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. Description
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99 Caliber System, Inc. News Release dated April 21, 1997.
<PAGE> 1
Exhibit 99
NEWS RELEASE [CALIBER LOGO]
CALIBER SYSTEM, INC.
3925 Embassy Parkway
Investor Contact: Investor Relations P.O. Box 5459
(330) 665-8814 Akron, OH 44334-0459
(330) 665-5646
Media Contact: Dina Gruey http://www.calibersys.com
(330) 665-8849
FOR IMMEDIATE RELEASE
APRIL 21, 1997
CALIBER SYSTEM ANNOUNCES FIRST QUARTER RESULTS
AKRON, OHIO - Caliber System, Inc. (NYSE: CBB) today reported a net loss
for the first quarter ended March 29, 1997 of $49.2 million or $1.25 per share,
compared to net income of $9.6 million or $0.24 per share in the first quarter
of 1996. Included in the first quarter results is a restructuring charge of
$85 million ($56.4 million net of tax) or $1.43 per share for employee-related
costs, including severance and benefits, costs related to lease terminations
and other expenses resulting from the restructuring of Viking Freight, which
was announced on March 27, 1997. Excluding the effect of these restructuring
charges, the company earned $.18 per share in the quarter. Revenue for the
first quarter of 1997 amounted to $641.2 million, a 10% increase over 1996
first quarter revenue of $582.1 million.
"This has been a pivotal quarter for Caliber, " said Daniel J. Sullivan,
Chairman, President and CEO of Caliber System. "With the restructuring of
Viking, we are optimistic about our prospects for the remainder of the year.
RPS, Roberts Express and Caliber Logistics are off to a good start in 1997."
Excluding Viking, combined revenues amounted to $440.1 million in 1997, an
increase of 19% over 1996 levels. Operating profit of $46.6 million in 1997
improved from $32.2 million in 1996. Operating margins at RPS, Roberts and
Logistics improved over last year as aggressive cost control measures
implemented in the fourth quarter of 1996 have had a positive effect on
earnings.
As part of the restructuring, the Company terminated the operations at the
former Coles Express unit in the Northeast and Spartan Express in the Southeast
and Midwest and is negotiating the sale of the former Central Freight Lines,
which serves customers in the Southwest. Viking now provides regional freight
service to customers in 12 western through 43 terminals.
-MORE-
<PAGE> 2
FIRST QUARTER RESULTS
PAGE 2 OF 3
RPS Posts Record First Quarter Revenues and Profits
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Revenue at RPS amounted to $339.1 million for the first quarter of 1997 as
compared to 1996 first quarter revenues of $287.7 million, an 18% increase.
However, there were three additional shipping days in this year's first quarter.
Operating income rose to $38.7 million in the first quarter of 1997 from $27.7
million in 1996. The RPS results were positively affected by a $5.3 million
one-time change in employee benefits.
"We are pleased with RPS's performance during the first quarter," said
Sullivan. "Package volume is significantly higher than last year; however, a
continuing, aggressive pricing environment, lower package weights and a greater
percentage of overnight packages in the company's mix has reduced revenue yields
year over year. Nonetheless, revenue and profits have improved over 1996's first
quarter. Our on-time service - the best in the company's 12-year history - is
currently running at 96%. Our commitment to service culture as well as a strong
retail environment have helped RPS realize double-digit growth in the first
quarter."
Roberts and Caliber Logistics
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Roberts Express, the Company's expedited carrier, reported revenue growth
of 4% over the first quarter last year and operating income 5% higher than 1996.
Caliber Logistics experienced a 54% increase in gross revenue and a 38% increase
in net revenues for the first quarter over the same period in 1996 while
improving operating income. "Both of these units met their profits plans in the
quarter," said Sullivan.
Viking
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Viking's first-quarter revenue decreased to $201.1 million in 1997 from
$211.3 million in 1996. The operating loss, excluding the $85 million
restructuring charge, amounted to $33.1 million compared to a loss of $14.0
million in the first quarter of last year.
"Viking is reducing expenses as quickly as possible as the company
completes the transition process," noted Sullivan. "Response to the new Viking
in the West has been very positive among our customer base."
Sullivan added that negotiations for the sale of Central are continuing and
expects resolution of the matter in the current fiscal quarter. Operations have
ceased at all of the 83 terminals in the Northeast, Southeast and Midwest.
-MORE-
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FIRST QUARTER RESULTS
PAGE 3 OF 3
Consolidated Results
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Unaudited revenue and earnings for the first quarter of 1997, with
comparable figures for 1996, are as follows:
<TABLE>
<CAPTION>
(First Quarter)
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March 29, 1997 March 23, 1996
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(dollars in thousands, except per share data)
<S> <C> <C>
Revenue
RPS $ 339,135 $ 287,699
Viking 201,051 211,284
Other 101,010 83,091
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$ 641,196 $ 582,074
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Operating Income (Loss)
RPS $ 38,711 $ 27,729
Viking (33,064) (13,988)
Other 7,879 4,440
Operating Income Before Restructuring ----------- ------------
13,526 18,181
Restructuring Charge (85,000) --
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Operating Income (Loss) (71,474) 18,181
Other Expense, Net (125) (1,232)
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Income (Loss) Before Income Taxes (71,599) 16,949
Provision (Benefit) For Income Taxes (22,375) 7,328
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Net Income (Loss) $ (49,224) $ 9,621
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Earnings (Loss) Per Share $ (1.25) $ 0.24
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Average Shares Outstanding 39,247 39,505
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Note: The sale of Roadway Express stock retained from the spin-off decreased
other expense, net by $5.3 million or $0.07 per share. The Company operates in
13 four-week periods. Each of the first three quarters contain 12 weeks and the
fourth quarter contains 16 weeks.
</TABLE>
Caliber System is a leading provider of value-added transportation,
logistics and related information services. Its operating companies include
RPS, a business-to-business small-package carrier; Viking Freight, a supplier of
regional freight service in the West; Caliber Logistics, a contract logistics
provider; Roberts Express, a critical-shipment carrier; and Caliber Technology,
a producer of systemwide information services. By combining its operating
units' products and services, Caliber offers integrated, customized solutions
that meet customer demand for more comprehensive transportation and logistics
programs.
This release contains forward-looking statements that are subject to
certain risks and uncertainties that 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.
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