<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
September 8, 1997 (August 25, 1997)
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Date of Report (Date of earliest event reported)
PHILIP SERVICES CORP.
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(Exact name of Registrant as specified in its charter)
Ontario 0-20854 Not Applicable
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(State or other jurisdiction) (Commission File (IRS Employer
of incorporation) Number) Identification No.)
100 King Street West, P.O. Box 2440, LCD1, Hamilton, Ontario, Canada L8N 4J6
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(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (905) 521-1600
PHILIP ENVIRONMENTAL INC.
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(Former name or former address, if changed since last report.)
Page 1 of 7
Exhibit Index on Page 4
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ITEM 5. OTHER EVENTS.
On August 25, 1997, the Company distributed its quarterly report for the six
month period ended June 30, 1997. At that date, the Company was a foreign
private issuer under the U.S. securities laws. The quarterly financial
statements set forth in the quarterly report are attached hereto as Exhibit
99.1.
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------- -----------
<S> <C>
99.1 Quarterly financial statements for the six month period ended
June 30, 1997.
</TABLE>
2
<PAGE> 3
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 authorized.
PHILIP SERVICES CORP.
By: /s/ Colin H. Soule
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Executive Vice President
and General Counsel
Dated: September 8, 1997
3
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------- -----------
<S> <C>
99.1 Quarterly financial statements for the six month period ended
June 30, 1997.
</TABLE>
4
<PAGE> 1
Exhibit 99.1
PHILIP SERVICES CORP.
CONSOLIDATED STATEMENTS OF EARNINGS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
(in thousands of US dollars,
except share and per share THREE MONTHS SIX MONTHS
amounts and in US GAAP) ENDED JUNE 30 ENDED JUNE 30
(unaudited) 1997 1996 1997 1996
- -------------------------------------------------------------------------------------
(Restated) (Restated)
(Note B) (Note B)
<S> <C> <C> <C> <C>
Revenue (Note A)
Metals recovery $258,788 $ 58,179 $461,746 $119,378
Industrial services 91,078 64,951 152,994 117,128
Utilities management 3,891 -- 8,618 --
- -------------------------------------------------------------------------------------
353,757 123,130 623,358 236,506
Operating expenses 291,735 96,556 510,282 183,991
Selling, general and
administrative costs 22,676 12,777 46,254 24,460
Depreciation and
amortization 9,140 6,266 17,590 11,291
- -------------------------------------------------------------------------------------
Income from operations 30,206 7,531 49,232 16,764
Interest expense 7,963 4,931 13,979 9,973
Other income and
expense - net (676) (1,270) (4,051) (1,799)
- -------------------------------------------------------------------------------------
Earnings from continuing
operations before tax 22,919 3,870 39,304 8,590
Income taxes 7,011 810 11,923 1,979
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Earnings from
continuing operations 15,908 3,060 27,381 6,611
Discontinued operations
(net of tax) -- 4,835 -- 5,298
- -------------------------------------------------------------------------------------
Net earnings $15,908 $ 7,895 $ 27,381 $ 11,909
- -------------------------------------------------------------------------------------
Basic earnings per share
Continuing operations $0.22 $0.07 $0.39 $0.17
Discontinued operations $ -- $0.11 $ -- $0.12
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$0.22 $0.18 $0.39 $0.29
- -------------------------------------------------------------------------------------
Fully diluted earnings
per share
Continuing operations $0.22 $0.06 $0.38 $0.14
Discontinued operations $ -- $0.09 $ -- $0.10
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$0.22 $0.15 $0.38 $0.24
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Weighted average
number of common
shares outstanding 71,327 43,688 70,970 40,586
- -------------------------------------------------------------------------------------
</TABLE>
A. Revenue figures have been reclassified to disclose the Company's By-
Products Recovery and Environmental Services operations as Industrial Services.
B. Prior year figures have been restated to disclose the Company's
municipal and commercial solid waste business as discontinued operations.
<PAGE> 2
PHILIP SERVICES CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands of US dollars and in US GAAP)
(unaudited)
<TABLE>
<CAPTION>
JUNE 30 December 31 June 30
1997 1996 1996
------- ----------- -------
<S> <C> <C> <C>
ASSETS
Current assets
Cash and equivalents $ 7,602 $ 6,044 $ 607
Accounts receivable 257,088 199,921 107,788
Inventory for resale 239,312 181,080 84,976
Other current assets 36,862 44,690 24,551
---------- ---------- ----------
540,864 431,735 217,922
Fixed assets 341,494 254,087 267,296
Goodwill 261,929 235,622 213,980
Other assets 79,100 55,792 52,604
---------- ---------- ----------
$1,223,387 $ 977,236 $ 751,802
========== ========== ==========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued liabilities $ 150,846 $ 158,104 $ 95,412
Current maturities of
long-term debt 7,956 19,956 7,812
---------- ---------- ----------
158,802 178,060 103,224
Long-term debt 493,948 282,825 179,012
Deferred income taxes 33,714 31,227 26,207
Other liabilities 40,025 35,217 29,197
Convertible subordinated
debentures -- -- 119,875
Shareholders' Equity 496,898 449,907 294,287
---------- ---------- ----------
$1,223,387 $ 977,236 $ 751,802
========== ========== ==========
</TABLE>
<PAGE> 3
PHILIP SERVICES CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
(in thousands of US dollars and in US GAAP) SIX MONTHS ENDED JUNE 30
(unaudited) 1997 1996
- -------------------------------------------------------------------------------
(Restated)
(Note B)
<S> <C> <C>
OPERATING ACTIVITIES
Net earnings from continuing operations $ 27,381 $ 6,611
Items included in earnings not affecting cash
Depreciation and amortization 13,844 8,547
Amortization of goodwill 3,746 2,744
Deferred income taxes 1,886 (2,884)
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Cash flow from continuing operations 46,857 15,018
Cash used to finance working capital (112,656) (31,485)
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Cash used in continuing operating activities (65,799) (16,467)
Cash provided by discontinued operating activities -- 21,590
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Cash provided by (used in) operating activities (65,799) 5,123
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INVESTING ACTIVITIES
Proceeds from sale of solid waste operations 17,000 38,979
Acquisitions -- including acquired cash
(bank indebtedness) (104,416) (5,377)
Purchase of fixed assets (25,900) (11,177)
Other (14,273) (17,781)
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Cash provided by (used in) continuing
investing activities (127,589) 4,644
Cash used in investing activities
of discontinued operations -- (10,291)
- -------------------------------------------------------------------------------
Cash used in investing activities (127,589) (5,647)
- -------------------------------------------------------------------------------
FINANCING ACTIVITIES
Changes in long-term debt 192,050 (46,388)
Common shares issued 2,896 59,216
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Cash provided by continuing financing activities 194,946 12,828
Cash used in financing activities
of discontinued operations -- (11,697)
- -------------------------------------------------------------------------------
Cash provided by financing activities 194,946 1,131
- -------------------------------------------------------------------------------
Net change in cash for the period 1,558 607
Cash position, beginning of period 6,044 --
- -------------------------------------------------------------------------------
Cash position, end of period $ 7,602 $ 607
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
