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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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 30, 1997
D&K HEALTHCARE RESOURCES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-20348 43-1465483
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
organization) Number)
8000 MARYLAND AVENUE
SUITE 920
ST. LOUIS, MISSOURI 63105
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (314) 727-3485
Page 1 of 5 pages
Exhibit Index on Page 4
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ITEM 5. OTHER EVENTS.
On September 30, 1997, D&K Healthcare Resources, Inc., a Delaware
corporation (the ``Company''), was advised that a third party has acquired
substantially all of the assets of its largest customer and that the purchaser
of the assets has secured a new supplier. Upon closing of the transaction, the
Company received payment in full of its outstanding accounts receivable from the
customer. The Company issued a press release dated September 30, 1997 regarding
such developments, a copy of which is included as Exhibit 99 hereto and
incorporated by reference herein.
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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: October 1, 1997
D&K HEALTHCARE RESOURCES, INC.
By /s/ Daniel E. Kreher
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Daniel E. Kreher, Vice President--
Finance and Administration
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EXHIBIT INDEX
Exhibit No. Description
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99 Press Release, dated September 30, 1997
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EXHIBIT 99
[D&K HEALTHCARE RESOURCES, INC. LETTERHEAD]
NEWS RELEASE
FOR IMMEDIATE RELEASE
D&K HEALTHCARE RESOURCES, INC. REPORTS DEVELOPMENT
REGARDING MAJOR CUSTOMER
ST. LOUIS, MISSOURI, SEPTEMBER 30, 1997 - D&K Healthcare Resources, Inc.
(NASDAQ:DKWD) has been advised that a third party has acquired substantially
all of the assets of its largest customer and that the purchaser of the
assets has secured a new supplier. On August 15, 1997, D&K disclosed the
then pending transaction. Despite the revenues derived by D&K from such
customer, it has represented a below average profit contribution to D&K as
well as above average extended payment terms compared to other large
customers of D&K. This customer comprised 18.3% of D&K's net sales during
the quarter ended June 30, 1997. D&K has received payment in full of its
accounts receivable from the customer which receivable represented 35.4% of
the Company's net accounts receivable balance at June 30, 1997. As a result,
D&K's required working capital needs and associated borrowings have been
reduced significantly and its related interest expense will decline
accordingly. The Company expects that anticipated growth in higher margin
sales to both existing and new customers will replace the lost revenues.
Accordingly, D&K's management does not believe that the transaction will
have a material adverse effect on its consolidated results of operations,
financial condition or prospects.
J. Hord Armstrong, III, Chairman and CEO, stated ``The transaction has
resolved the previously reported uncertainties regarding this customer
relationship and will not significantly affect our future business
plans.''
The forward-looking statements contained in this press release are inherently
subject to risks and uncertainties. D&K's actual results could differ
materially from those currently anticipated due to a number of factors,
including without limitation, the competitive nature of the wholesale
pharmaceutical drug distribution industry, the evolving business and
regulatory environment of the healthcare industry in which D&K operates
and other factors set forth in reports and other documents filed by D&K
with the Securities and Exchange Commission from time to time.
D&K Healthcare Resources, Inc., of St. Louis, Missouri, is a full-service
regional wholesale drug distributor supplying customers from facilities
in Lexington, Kentucky; Minneapolis, Minnesota; and Cape Girardeau,
Missouri. D&K owns a 50 percent interest in Pharmaceutical Buyers, Inc.,
of Boulder, Colorado, one of the nation's leading alternate site group
purchasing organizations. D&K also invites all interested parties to
visit its Web site at http://www.dkwd.com.
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