<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Filed pursuant to Section 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
March 30, 1999 (March 30, 1999)
--------------------------------
(Date of Report (Date of earliest event reported))
OLSTEN CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware
----------------------------------------------
(State or other jurisdiction of incorporation)
0-3532
------------------------
(Commission File Number)
13-2610512
---------------------------------
(IRS Employer Identification No.)
175 Broad Hollow Road
Melville, New York 11747-8905
-----------------------------------------
(Address of principal executive offices)
(516) 844-7800
----------------------------------------------------
(Registrant's telephone number, including area code)
<PAGE>
ITEM 5. OTHER EVENTS
- ------- -------------
Registrant released the press release attached hereto as
Exhibit 99 on March 30, 1999.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
- ------- ---------------------------------
(c) Exhibits
Exhibit 99 -- Press release dated March 30, 1999.
<PAGE>
SIGNATURE
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.
OLSTEN CORPORATION
(REGISTRANT)
Date: March 30, 1999 By:/s/ Laurin L. Laderoute, Jr.
----------------------------
Laurin L. Laderoute, Jr.
Vice President
<PAGE>
CONTACTS: David R. Fluhrer
Vice President-Communications
(516) 844-7590
[email protected]
-----------------------
www.olsten.com
--------------
Anthony J. Puglisi
Executive Vice President and
Chief Financial Officer
(516) 844-7110
FOR IMMEDIATE RELEASE
- ---------------------
OLSTEN CORPORATION PLANS FIRST QUARTER SPECIAL CHARGE
FOR SETTLEMENT OF FEDERAL GOVERNMENT INQUIRIES
AND REALIGNMENT OF BUSINESSES
Melville, NY, March 30, 1999 -- Olsten Corporation today announced plans to take
a special charge of approximately $70 million, net of tax, or $ .86 per share,
for the first quarter ended April 4, 1999, to provide for settlement of two
Federal investigations focusing on certain of the Company's Medicare cost
reports and transactions with Columbia/HCA Healthcare Corp., and also to provide
for realignment of Olsten's business units to lower the Company's cost base,
improve efficiencies and refocus its marketing efforts.
"Today's announcement positions Olsten to move forward and intensify its
focus and corporate resources in building on our strengths, improving financial
performance and enhancing shareholder value," said President and Chief Executive
Officer Edward A. Blechschmidt. "We believe the realignment of our Staffing and
Health Services operations should go a long way to improve our efficiency and
profitability in the months ahead.
"After almost two years of investigations, we are pleased to have
positioned ourselves to put these government inquiries behind us," he said. "In
a company that has had an exemplary record of both ethical conduct and service
excellence spanning nearly 50 years, we remain committed to the highest ethical
and medical standards in the conduct of our business. We will tolerate no less
from anyone who represents our Company or seeks to do business with us."
The Company said it has reached an understanding - subject to the
execution of formal settlement documents and the satisfaction of certain
conditions -- on a proposed settlement with the U.S. Department of Justice to
settle the two Federal investigations referenced above, under which Olsten will
pay $61 million, including approximately $10 million in fines and penalties, and
Kimberly Home Health Care, a Company subsidiary, will plead guilty to violation
of certain Federal criminal statutes. Blechschmidt said that since the agreement
is not yet final, the Company has agreed with the Department of Justice not to
elaborate further on the proposed settlement. However, he noted that neither the
investigations nor the proposed settlement involve any issues relating to the
quality of care provided to patients, as evidenced by Olsten Health Services'
consistently high patient satisfaction ratings, nor would they cause any
interruptions in Olsten Health Services' future ability to provide for patients.
-more-
<PAGE>
Olsten Corporation has been assisting the Government in its Medicare
investigations for more than 18 months. The Company has significantly enhanced
its already strong compliance programs covering all of its business lines. For
instance, in late 1998, Olsten appointed a corporate-level Chief Compliance
Officer -- reporting to the Audit Committee of the Board of Directors -- to help
ensure both maintenance and enhancement of high ethical standards in an
increasingly complex health care regulatory environment, as well as in Olsten's
other businesses.
Blechschmidt said the realignment measures in North American Staffing
Services include an eight percent reduction and/or consolidation of Olsten's
branch network of approximately 400 offices in the United States and Canada to
achieve greater efficiency through lower real estate costs and the reduction of
overhead. Entirely new information systems - anticipated to be the best and most
advanced in the staffing industry - will result in increased efficiencies and
allow Olsten to further consolidate various support operations and improve
responsiveness to clients. The new systems are expected to improve the Company's
effectiveness by bringing such enhancements as Internet recruiting closer to
Olsten's recruiters and job candidates, allowing Olsten to redeploy its
resources to enhance its ability to serve customers' needs.
Olsten Health Services' realignment encompasses exiting the hospice
business and a number of home medical equipment markets, as it relies instead on
the cost-effective outsourcing of these services to qualified vendors; closing
or consolidating 15 additional nursing branch offices in various parts of the
country; and continuing the streamlining of support operations for billing and
collection. All of these measures expand upon Olsten Health Services'
comprehensive restructuring and recovery program launched in 1998.
Blechschmidt noted that while Olsten anticipates first quarter
double-digit revenue growth for each of its businesses Staffing Services,
Information Technology Services and Health Services -- the realignment of
certain operations, combined with tighter profit margins in U.S. Staffing
Services and continued profit pressure in Health Services, will likely result in
the Company reporting first quarter 1999 operating earnings of approximately $
.10 per share.
Olsten Corporation (NYSE:OLS), with 1,500 offices on three continents,
is an acknowledged leader in each of its businesses. The Company operates more
than 1,000 staffing offices - providing staffing solutions and assignment
employees to business, industry and government - in North America, Latin America
and Europe under Olsten Staffing Services and related brands. Olsten's
information technology division, IMI Systems, provides design, program and
maintenance of computer systems, including focused solutions for applications
management, quality assurance and enterprise support services to clients in
North America and Western Europe. Olsten Health Services, with more than 400
offices in the United States and Canada, provides health care Network Services
and caregivers for home health care; home infusion and other therapies; and
marketing and distribution solutions for pharmaceutical, biotechnology and
medical device firms.
In 1998, Olsten Corporation achieved revenues of $4.6 billion and
employed approximately 700,000 people serving approximately 600,000
client/patient accounts.
Information contained in this news release, other than historical
information, should be considered forward-looking, and is subject to various
risk factors and uncertainties. For instance, the Company's strategies and
operations involve risks of competition, changing market conditions, changes in
laws and regulations affecting our industries and numerous other factors
discussed in this release and in the Company's filings with the Securities and
Exchange Commission. Accordingly, actual results may differ materially from
those in any forward-looking statements.
# # #
