FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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CURRENT REPORT
Pursuant to Section 13 or 15 (d)
of the Securities and Exchange Act of 1934
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Dated: March 17, 1997
Employee Solutions, Inc.
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(Exact name of registrant as specified in its charter)
Arizona 0-22600 86-0676898
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
2929 East Camelback Road, Suite 220, Phoenix, Arizona 85016
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (602) 955-5556
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ITEM 5. OTHER EVENTS
On March 17, 1997, Employee Solutions, Inc. (the "Company") issued a
press release, attached as Exhibit 99, reporting its 1996 financial results.
Such press release is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
1. Exhibits. See exhibit index attached hereto.
2. Financial Statements. None.
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 thereunto duly authorized.
EMPLOYEE SOLUTIONS, INC.
By:/s/ Marvin D. Brody
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Marvin D. Brody
Chief Executive Officer
Date: March 21, 1997
2
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EMPLOYEE SOLUTIONS, INC.
FORM 8-K
DATED MARCH 17, 1997
EXHIBIT INDEX
Exhibit No. Description Filed Herewith
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99 Press release dated March 17, 1997 X
EI-1
Exhibit 99
FOR IMMEDIATE RELEASE
Contacts: Marvin D. Brody, Chairman and Chief Executive Officer
Morris C. Aaron, Chief Financial Officer
(602) 955-5556
EMPLOYEE SOLUTIONS, INC. ANNOUNCES 1996 EARNINGS
PHOENIX, AZ / March 17, 1997 --- Employee Solutions, Inc. (NASDAQ NM: ESOL)
today reported financial results for its year and fourth quarter ended December
31, 1996.
For the year, revenues grew 167% to a record $439 million in 1996, from $164.5
million in 1995. Net income for the year grew to $12.0 million, or $.37 per
fully diluted share, compared with net income of $3.8 million, or $.14 per fully
diluted share, in 1995. (Per share results throughout are adjusted to reflect
the impact of the two 2-for-1 stock splits effected by the company in 1996.)
For the fourth quarter of 1996, revenues grew 104% to $149 million, from $73
million in the same period in 1995. Net income for the 1996 quarter was $2.3
million, or $.07 per fully diluted share, in the quarter, compared with net
income of $1.6 million, or $.05 per fully diluted share, in the same period in
1995.
Marvin D. Brody, Chairman and Chief Executive Officer of Employee Solutions,
Inc., stated, "While we are obviously pleased to announce substantially
increased revenues and earnings for the year, we are disappointed with the
fourth quarter operating results, even though earnings exceeded fourth quarter
1995."
"ESI is also pleased that it maintained its position as the most profitable
publicly-held professional employer organization," Brody continued.
ESI reported that earnings were impacted by several factors which affected the
fourth quarter, particularly its workers' compensation reserves which were
increased to $5.2 million at December 31, 1996. ESI was also affected, and
continues to be affected, by increased competition and an overall weakness in
workers' compensation and benefits markets.
As of December 31, 1996, the number of ESI's worksite employees was
approximately 30,100 (compared with approximately 11,000 at year end 1995) plus
approximately 13,000 stand-alone risk management/workers' compensation
employees.
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Employee Solutions, Inc. is a leading professional employer organization (PEO)
providing employers throughout the United States with comprehensive employee
payroll, human resources and benefits outsourcing services. ESI's integrated
outsourcing services include payroll processing and reporting, human resources
administration, employment regulatory compliance management, risk
management/workers' compensation insurance services, retirement and healthcare
programs as well as non-employment related products and services provided
directly to worksite employees.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this release which are not historical facts
are forward-looking statements subject to risks and uncertainties that could
cause actual results to differ materially from those set forth in the
forward-looking statements including delay or inability to conclude acquisition
transactions, introductions of competing services, cancellations of contracts,
changes in applicable regulations, general market acceptance of ESI's services,
fluctuations in margins, actual workers' compensation loss experience, demand
fluctuations, and other risks detailed in ESI's report on Form 10-Q for the
quarter ended September 30, 1996.
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Employee Solutions, Inc.
Fourth Quarter and Year End Results
December 31, 1996
(Amounts in thousands)
Summary Financial Results
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues $ 148,836 $ 73,060 $ 439,016 $ 164,455
Gross Profit $ 9,285 $ 5,693 $ 38,154 $ 13,780
Income From Operations $ 3,799 $ 2,456 $ 18,771 $ 6,171
Income Before Taxes $ 3,211 $ 2,661 $ 18,407 $ 6,681
Net Income $ 2,312 $ 1,629 $ 12,026 $ 3,835
Earnings Per Share - Fully Diluted $ 0.07 $ 0.05 $ 0.37 $ 0.14
Weighted Average Shares 32,785 26,431 32,386 26,431
Outstanding - Fully Diluted
</TABLE>
