<PAGE> 1
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) September 15, 1997
THE LOEWEN GROUP INC.
(Exact name of registrant as specified in its charter)
British Columbia, Canada 0-18429 98-0121376
- ------------------------------- ------------------------ -------------
(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation) Identification No.)
4126 Norland Avenue, Burnaby, British Columbia V5G 3S8
- -------------------------------------------------------------------------------
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code 604-299-9321
----------------------------
N/A
-------------------------------------------------------------
(Former name or former address, if changed since last report)
Exhibit Index is on page 3
Page 1 of 6
<PAGE> 2
ITEM 5. OTHER EVENTS.
Pursuant to Form 8-K, General Instructions F, registrant hereby incorporates by
reference the press release attached hereto as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
Exhibit No. Description
Exhibit 99 The Loewen Group Inc. Press Release dated
September 15, 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 hereunto duly authorized.
Dated: September 15, 1997
THE LOEWEN GROUP INC.
By:/s/ Peter S. Hyndman
-------------------------------------
Name: Peter S. Hyndman
Title: Corporate Secretary
<PAGE> 3
EXHIBIT INDEX
<TABLE>
<CAPTION>
Sequential
Number Exhibit Page Number
- ------ ------- -----------
<S> <C> <C>
99 The Loewen Group Inc. 4
Press Release dated September 15, 1997
</TABLE>
<PAGE> 1
Page 1
The Loewen Group Inc.
- ------------------------------------------------------------------------------
NEWS
Investor contacts: Media Contact:
Paul Wagler, Senior Vice President, Finance Dave Laundy, Vice President
Dwight Hawes, Vice President, Finance Corp. Communications
Chris Hunter, Director, Investor Relations Tel: (604) 293-7857
The Loewen Group Inc.
Tel: (800) 347-7010
FOR IMMEDIATE RELEASE
LOEWEN GROUP ANNOUNCES STRATEGIC INITIATIVES
TO YIELD US$25 - 30 MILLION DOLLARS
OF ANNUAL COST SAVINGS
VANCOUVER, BC, September 15, 1997 -- The Loewen Group Inc. today announced a
series of strategic initiatives designed to streamline operations, reduce costs
and build a stronger foundation for future growth.
"The Loewen Group has enjoyed extraordinary growth in revenues and
earnings per share over the past decade. Like most other growth companies, we
have also experienced an expansion of our overhead base and have not realized
the full extent of the savings from our numerous acquisitions," said Raymond L.
Loewen, the company's chairman and chief executive officer. "The decisive
actions we are taking reflect the management team's intense focus on improving
the long-term efficiency of our operations and enhance the foundation for
sustainable, profitable growth of the company in the coming years."
The company said that the strategic initiatives should provide cost
savings of at least US $25 - $30 million or US $0.25 - $0.30 per share annually
by the end of 1998. The
<PAGE> 2
majority of these savings are associated with the company's efforts to more
fully integrate its field and administrative operations, including clustering of
funeral home and cemetery groups. These initiatives are expected to favorably
impact gross margins in the company's funeral and cemetery divisions, as well as
produce savings in general and administrative expenses and interest costs. The
company said that the benefits of the strategic initiatives should be reflected
in results for the fourth quarter of 1997 and beyond.
The company expects to incur pre-tax charges of approximately US $80
million associated with these actions in the third quarter ending September 30,
1997. On an after-tax basis, the charges will approximate US $55 million or US
$0.76 per share. The charges relate to costs associated with the repayment of
high-cost debt, the previously announced closing of the Cincinnati corporate
office, staff reductions, reserve and asset adjustments and other initiatives.
As a result, the company expects to report a loss for the third quarter. The
company also noted that primarily due to lower funeral and cemetery volumes and
a change in the mix of products and services, it expects to report significantly
lower than expected earnings from operations for the remainder of the year.
- more -
<PAGE> 3
On August 11, 1997, the company announced an agreement to sell its
minority interest in Arbor Memorial Services, Inc. This sale, which is subject
to Canadian regulatory approval, is anticipated to be recorded in the third
quarter of 1997 and will result in a pre-tax gain of approximately US $24
million or US $0.19 per share after tax.
The company will report third quarter results on or about November 6,
1997.
"These initiatives will support the company's long-term growth plans in
what is fundamentally a low-risk, fragmented and stable industry," said Larry
Miller, executive vice president, operations. "We are determined to be a leading
integrator as well as acquirer of funeral and cemetery properties. The steps we
have been taking during the year -- centralized administrative functions,
improved purchasing arrangements and regional clustering of operations -- are
beginning to yield measurable results."
Mr. Loewen added: "These strategic initiatives were developed with the
involvement and support of our field management and will enable us to maintain
the very highest levels of service in the communities in which we operate."
To date in 1997, The Loewen Group has agreements in place or closed
acquisitions representing an aggregate purchase price of US $602 million. Since
the beginning of the year the company has closed transactions to acquire 94
funeral homes and 132 cemeteries for US $378 million. In addition, the company
has in place signed agreements for the acquisition of 74 funeral homes and 68
cemeteries for an estimated total purchase price of US $224 million.
Separately, the company said that its board of directors has authorized
a plan to purchase 3.6 million Common shares (approximately 5% of the
outstanding common shares) and up to 440,000 Series C Preferred Shares
(approximately 5% of the outstanding Series C Preferred Shares) from time to
time and as market and business conditions warrant, on the open market. The
purchase of the common shares will be made through the facilities of the Toronto
Stock Exchange, the Montreal Exchange and the New York Stock Exchange, and the
purchases of the Series C Preferred Shares will be made through the facilities
of the Toronto Stock Exchange and the Montreal Exchange. Purchase on the
Canadian exchanges may commence on September 17, 1997, subject to regulatory
approval, and purchases on the New York Stock Exchange may commence on September
22, 1997. Purchases will be made at the prevailing market price at the time of
such purchases.
"We believe that our Common shares and Series C Preferred Shares are
undervalued at prevailing market prices," Mr. Loewen said. "Using our corporate
funds to repurchase these undervalued securities will benefit shareholders in
the long term,"
<PAGE> 4
The company has not repurchased any of its Common shares or Series C Preferred
shares in the past 12 months.
- more -
<PAGE> 5
With corporate offices in Vancouver and Philadelphia, The Loewen Group
Inc. is the second largest and fastest growing funeral home and cemetery service
company in North America in terms of assets and revenues. The company employs
some 17,000 people and owns and operates more than 1,000 funeral homes, over 400
cemeteries and 50 crematoria across the United States and Canada. Over 90% of
the company's revenue is derived from the United States.
This release contains forward looking statements, as defined by the
Private Securities Litigation Reform Act of 1995, and reflects certain risks and
uncertainties that may cause actual results to differ materially from
expectations as of the date of this announcement. These risks include, but are
not limited to, the ability to complete the planned initiatives in the time
estimated, the success of ongoing cost management programs and shifts in the
volume demand for the company's services.
Loewen website located at: http://www.loewengroup.com
- 30 -
