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As filed with the Securities and Exchange Commission on May 24, 2000
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
Date of Report: May 24, 2000
(Date of earliest event reported)
THE REYNOLDS AND REYNOLDS COMPANY
(Exact name of registrant as specified in the charter)
Ohio 1-10147 31-0421120
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
115 South Ludlow Street
Dayton, Ohio 45402
(Address of Principal Executive Offices)
(937) 485-2000
(Registrant's telephone number including area code)
n/a
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
Pursuant to Form 8-K General Instruction F, the Registrant hereby
incorporates by reference the press release attached hereto as Exhibit 99.
Certain statements in the attached press release constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The forward-looking statements are based on
current expectations, estimates, forecasts and projections of future company or
industry performance based on management's judgment, beliefs, current trends and
market conditions. Forward-looking statements made or to be made by or on behalf
of the company may be identified by the use of words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar
expressions. Forward-looking statements are not guarantees of future performance
and involve certain risks, uncertainties and assumptions that are difficult to
predict. Actual outcomes and results may differ materially from what is
expressed, forecasted or implied in the forward-looking statements. See also the
discussion of factors that may affect future results contained in the company's
Current Report on Form 8-K filed with the SEC on February 9, 2000, which we
incorporate herein by reference. The company undertakes no obligation to update
any forward-looking statements, whether as a result of new information, future
events or otherwise.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
THE REYNOLDS AND REYNOLDS COMPANY
/s/ Adam M. Lutynski
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Adam M. Lutynski, General Counsel and Secretary
Dated: May 24, 2000
EXHIBITS
99 Press Release dated May 19, 2000
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EXHIBIT 99
FRIDAY MAY 19, 2000
CORRECTED - GM TO TAKE 10 PCT STAKE IN REYNOLDS AND REYNOLDS
IN MAY 16 STORY HEADLINED "GM TO TAKE 10 PCT STAKE IN REYNOLDS AND REYNOLDS,"
PLEASE CORRECT FIRST PARAGRAPH TO MAKE CLEAR GM WAS GRANTED EQUITY STAKE AND DID
NOT PURCHASE IT.
A CORRECTED VERSION FOLLOWS
DETROIT, MAY 16 - GENERAL MOTORS CORP. (NYSE: GM) SAID TUESDAY IT WAS GRANTED A
10 PERCENT STAKE IN CAR DEALERSHIP COMPUTER SYSTEM SUPPLIER REYNOLDS AND
REYNOLDS CO. (NYSE: REY) AS PART OF AN ALLIANCE AIMED AT SIMPLIFYING CAR BUYING.
UNDER THE AGREEMENT, THE TWO COMPANIES WILL WORK TO INTEGRATE THE VARIOUS
COMPUTER SYSTEMS OF GM'S MORE THAN 8,000 DEALERS IN NORTH AMERICA TO SPEED THE
DELIVERY OF NEW VEHICLES TO CONSUMERS.
"THERE'S A REAL SPAGHETTI OF SYSTEMS, AND PCS AND NETWORKS OUT THERE TODAY (AT
DEALERSHIPS)," LLOYD WATERHOUSE, PRESIDENT AND CHIEF OPERATING OFFICER OF
REYNOLDS AND REYNOLDS, TOLD REPORTERS IN A CONFERENCE CALL. "WE'VE HAD SOME
EXPERIENCE WHERE WE'VE BEEN ABLE TO PULL IT TOGETHER AND SAVE THEM 10 TO 15
PERCENT OF THEIR COSTS."
EVENTUALLY, CUSTOMERS WILL BE ABLE TO USE THE INTERNET TO TRACK THEIR ORDERS AS
THEIR VEHICLES ARE BEING BUILT AND DELIVERED TO DEALERSHIPS, SAID BILL LOVEJOY,
GM VICE PRESIDENT OF NORTH AMERICAN VEHICLE SALES, SERVICE AND MARKETING.
"JUST LIKE FEDEX LETS THE CUSTOMERS TRACK WHERE THEIR PACKAGE IS, THE CONSUMER
IS GOING TO BE ABLE TO TRACK WHAT STAGE THEIR VEHICLE IS IN BEING SHIPPED TO
THEM AND IN BEING BUILT," HE SAID.
WATERHOUSE SAID THE FIVE-YEAR DEAL, WHICH HAS AN OPTION FOR AN ADDITIONAL FIVE
YEARS AT THE DISCRETION OF BOTH PARTIES, IS WORTH $150 MILLION ANNUALLY FOR
REYNOLDS AND REYNOLDS BY THE FOURTH YEAR AND WELL OVER $1 BILLION OVER THE FULL
10 YEARS.
SHARES OF DAYTON, OHIO-BASED REYNOLDS AND REYNOLDS CLOSED UP 15/16 TO 26-3/4 ON
THE NEW YORK STOCK EXCHANGE. BASED ON THE STOCK PRICE, REYNOLDS OFFICIALS
ESTIMATED THE GM STAKE WAS WORTH ABOUT $240 MILLION.
GM SHARES ENDED UP 2-14/16 AT 89-5/16 ON THE NYSE.
THE ALLIANCE IS A STEPPING STONE IN GM'S EFFORTS TO CUT VEHICLE INVENTORY LEVELS
AND BUILD THE VEHICLES THAT CUSTOMERS ORDER, LOVEJOY SAID. GM OFFICIALS HAVE
SAID PREVIOUSLY THEY WANT TO HALVE WORLDWIDE VEHICLE INVENTORY LEVELS TO $20
BILLION FROM $40 BILLION.
"THE KEY PROBLEM WITH DEALERS TODAY IS THEY DON'T HAVE THE MONEY, MANPOWER OR
EXPERTISE TO BUILD THESE GREAT WEB-TO-CUSTOMER INFRASTRUCTURES THAT THE
MANUFACTURERS ENVISION," SAID ROB DESISTO, AN ANALYST WITH THE GARTNER GROUP.
GARTNER SAID THE ALLIANCE WILL HELP DEALERSHIPS USE THE INTERNET TO STRENGTHEN
TIES TO OWNERS AND GRAB MORE AFTERMARKET REVENUES FROM ROUTINE MAINTENANCE AND
OTHER SERVICES AND PRODUCTS.
DEALERSHIPS DERIVE ABOUT 70 PERCENT OF THEIR REVENUES FROM THE AFTERMARKET, AND
THAT FIGURE IS LIKELY TO RISE AS THE EASY ACCESS TO VEHICLE PRICES OVER THE
INTERNET GIVES CONSUMERS MORE POWER WHEN BUYING NEW CARS OR TRUCKS, DESISTO
SAID.
