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UNITED STATES 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): OCTOBER 5, 2000
STEWART ENTERPRISES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
LOUISIANA 0-19508 72-0693290
(STATE OR OTHER JURISDICTION (COMMISSION (I.R.S. EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
110 VETERANS MEMORIAL BOULEVARD
METAIRIE, LOUISIANA 70005
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(504) 837-5880
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
NOT APPLICABLE
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS
On October 5, 2000, the Company issued the following press release.
CONTACT: Kenneth C. Budde FOR IMMEDIATE RELEASE
Stewart Enterprises, Inc.
110 Veterans Memorial Boulevard
Metairie, Louisiana 70005
504/837-5880
STEWART ENTERPRISES, INC. SUSPENDS QUARTERLY DIVIDEND
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METAIRIE, LA, October 5, 2000 . . . Stewart Enterprises, Inc. (Nasdaq:
"STEI"), announced today that its Board of Directors has suspended the payment
of quarterly dividends on its Class A and Class B Common Stock. The Company
generates more than sufficient cash to service the dividend but believes that
shareholder interests are better served currently by reducing debt than by
continuing quarterly dividends.
Additionally, the Company's bank credit facility restricts the payment of
dividends when net earnings are below specified levels during any consecutive
four-quarter period. The Company's expected operating earnings exceed that
level, but, as previously disclosed, the Company expects to incur material
charges to earnings when it implements SAB 101 and upon the sale of certain
foreign operations. Although the Company has not yet quantified the amounts
of those charges or determined the quarters in which they will be incurred,
they are expected to be incurred in the near term and will restrict the
Company's ability to pay dividends for a period of time. That fact, coupled
with the Company's desire to conserve cash and reduce debt, caused the Board
to conclude that it was appropriate to suspend dividends in the current
quarter.
William E. Rowe, President and Chief Executive Officer, said: "Although our
quarterly dividend is relatively small compared to our earnings, we are fully
committed to de-leveraging our company, and the continuation of dividends at
any level is inconsistent with that commitment. We will review the situation
periodically and consider resuming the payment of dividends if circumstances
warrant doing so in the future."
Founded in 1910, Stewart Enterprises is the third largest provider of
products and services in the death care industry in North America, currently
owning and operating 625 funeral homes and 163 cemeteries in North America,
South America, Europe and the Pacific Rim.
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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.
STEWART ENTERPRISES, INC.
October 5, 2000 /s/ MICHAEL G. HYMEL
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Michael G. Hymel
Vice President -
Corporate Controller and
Chief Accounting Officer
