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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
April 24, 1998 (April 23, 1998)
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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
n/a
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(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS
On April 23, 1998, Philip Services Corp. (the "Company") announced that,
together with its auditors Deloitte & Touche, it has determined that its
financial statements for the fiscal year ended December 31, 1997, previously
filed with the Securities and Exchange Commission in its Annual Report on Form
10-K, did not properly reflect the results of transactions in the Company's
copper operations and as a result understated the Company's liabilities by an
amount estimated to be approximately US$30 million. The Company has also
determined that adjustments to certain balance sheet accounts of approximately
US$5 million are also required. These transactions resulted in an overstatement
of earnings. The US$30 million liability was discovered when the Company
recently paid and satisfied the obligation associated with this transaction. The
Company and Deloitte & Touche are continuing their examination of these matters
and the Company intends to file an amended Form 10-K upon the satisfactory
completion of the review. In accordance with SAS No. 1, until such amendment has
been filed, neither the Company's financial statements, nor the auditor's report
thereon, contained in the Form 10-K should be relied upon.
A copy of the Company's press release dated April 23, 1998 is set forth in
Exhibit 99.1 to this report.
Exhibit Number Description
99.1 Press release dated April 23, 1998
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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 authorized.
PHILIP SERVICES CORP.
By: /s/ Colin H. Soule
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Executive Vice President
and General Counsel
Dated: April 24, 1998
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EXHIBIT INDEX
Exhibit Number Description
99.1 Press release dated April 23, 1998
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EXHIBIT 99.1
NEWS RELEASE
April 23, 1998, Hamilton, ON - Philip Services Corp. (NYSE/TSE/ME: PHV)
announced today that, together with its auditors Deloitte & Touche, it has
determined that its financial statements for the fiscal year ended December 31,
1997, previously filed in its Annual Report on Form 10-K, did not properly
reflect the results of transactions in the Company's copper operations and as a
result understated the Company's liabilities by an amount estimated to be
approximately US$30 million. The Company has also determined that adjustments to
certain balance sheet accounts of approximately US$5 million are also required.
These transactions resulted in an overstatement of earnings. The US$30 million
liability was discovered when the Company recently paid and satisfied the
obligation associated with this transaction. The Company and Deloitte & Touche
are continuing their examination of these matters and the Company intends to
file an amended Form 10-K upon the satisfactory completion of the review.
Philip Services is an integrated metals and industrial services company with
operations throughout the United States, Canada and Europe. Philip provides
steel, copper, and aluminium processing and recovery services, together with
diversified industrial outsourcing services, to all major industry sectors.
Contact: Teresa Gregoroff Media: Lynda Kuhn
VP Investor Relations VP Corporate Communications
(905) 540-6788 (905) 540-6790
(905) 540-6789
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