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: March 20, 1997
(Date of the earliest event reported)
RIGHT MANAGEMENT CONSULTANTS, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania
(State or other jurisdiction of incorporation)
0-15539 23-2153729
(Commission (IRS Employer Identification
file number) Number)
1818 Market Street, Philadelphia, Pennsylvania 19103
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 988-1588
<PAGE>
Item 5: Other Matters
On March 20, 1997, Right Management Consultants, Inc. (the Company) announced
that it expected to report earnings below expectations for its first quarter
ending March 31, 1997. A copy of the press release is filed as Exhibit 99.1 of
this Form 8-K.
On March 27, 1997, the Company announced that its Board of Directors approved a
stock repurchase program under which the Company is authorized to repurchase up
to 10% of its currently outstanding common stock. A copy of the press release is
filed as Exhibit 99.2 of this Form 8-K.
Item 7: Exhibits
Exhibit
Number Description
99.1 Press Release Announcing Quarter One 1997 Earnings Estimates
99.2 Press Release Announcing Stock Repurchase Program
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 hereunto duly authorized.
RIGHT MANAGEMENT CONSULTANTS, INC.
(Registrant)
Date: March 31, 1997 By: /s/ G. Lee Bohs
---------------
Lee Bohs
Executive Vice President and
Chief Financial Officer
FOR IMMEDIATE RELEASE - MARCH 20, 1997
Philadelphia, Pennsylvania: Right Management Consultants, Inc. (NASDAQ: RMCI)
announced that due to lower than anticipated revenue, the Company expects to
report earnings below expectations for its first quarter ending March 31, 1997.
The Company expects it will report net income for the first quarter in the range
of $650,000 to $1,050,000, or $.10 to $.15 per share after the impact of a
restructuring charge in the approximate amount of $400,000 to $600,000, or $.06
to $.09 per share, net of taxes. The restructuring charge will consist primarily
of severance payments and remaining lease costs related to reductions in force
and office closures. The Company expects revenue for the quarter to approximate
$29,000,000. For the same quarter 1996, the Company reported net income of
$2,409,000, or $0.36 per share on total Company revenues of $32,455,000.
"Revenue results for the first quarter project to be less than expected,
necessitating an adjustment of Company cost structures by reducing staff and
closing some satellite offices that are underperforming or are redundant due to
acquisitions. We announced and began a formal implementation of a realignment of
our business in mid January 1997, and we believe when fully implemented by the
end of this quarter, this realignment will position us to focus the organization
more effectively for growth. In addition, we have consummated several
acquisitions during the quarter, and we continue to see opportunities for growth
through further acquisitions which may include the broadening of our services,"
stated Richard J. Pinola, Chairman and Chief Executive Officer.
This press release includes forward-looking statements regarding revenues,
earnings, growth rates and certain business trends that involve risks and
uncertainties that could cause actual results to differ materially from the
results discussed herein. Recipients of this press release are cautioned to
consider these risks and uncertainties and to not place undue reliance on these
forward-looking statements.
Right Management Consultants, Inc. does business as Right Associates(R),
Right/Jannotta Bray and (in France) as LM&P and Conviction Right France,
developing and delivering career transition services through locations
worldwide. Additionally, through the Company's People Tech division, the Company
provides organizational and career management consulting services, specializing
in change management, communication, strategy implementation, merger integration
and executive development.
# # #
Contact: G. Lee Bohs, Executive Vice President and Chief Financial Officer
Right Management Consultants, Inc.
1818 Market Street, Philadelphia, PA 19103
Phone: (215) 988-1588
Right Management Consultants, Inc. Announces Stock Repurchase Program
(Philadelphia, PA - March 27, 1997) - Right Management Consultants, Inc.
(NASDAQ: RMCI) announced that today its Board of Directors approved a stock
repurchase program under which the Company is authorized to repurchase up to 10%
of its currently outstanding common stock. Any shares repurchased will be held
as treasury shares and be available to the Company for use in various benefit
plans and, when authorized by the Board, for other general corporate purposes.
The Board has authorized Company management to pursue the repurchase program in
open market transactions from time-to-time, depending upon market conditions and
other factors. The Company has approximately 6,567,000 shares currently
outstanding.
Commenting on the announcement, Richard J. Pinola, Chairman and Chief Executive
Officer, stated, "The repurchase program reflects our confidence in the
long-term potential of Right Management Consultants' business and potential
increased value to shareholders, based on our belief that the stock is currently
undervalued. The Company's strong financial position will allow us to fund the
repurchase program while continuing our growth plans."
Right Management Consultants, Inc. does business as Right Associates(R),
Right/Jannotta Bray and (in France) as LM&P and Conviction Right France,
developing and delivering career transition services through locations
worldwide. Additionally, through the Company's People Tech division the Company
provides organizational and career management consulting services, specializing
in change management, communication, strategy implementation, merger integration
and executive development.
# # #
Contact: G. Lee Bohs, Executive Vice President and Chief Financial Officer
Right Management Consultants, Inc.
1818 Market Street, Philadelphia, PA 19103
Phone: (215) 988-1588
