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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): JULY 29, 1999
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SODEXHO MARRIOTT SERVICES, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 1-12188 52-0936594
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
9801 WASHINGTONIAN BOULEVARD, GAITHERSBURG, MARYLAND 20878
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (301) 987-4431
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ITEM 5. OTHER EVENTS.
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On July 29, 1999, Sodexho Marriott Services, Inc. released details
of the Company's Investor Conference held in New York, New York.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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(c) The following exhibit is filed as part of this Form 8-K.
Exhibit No. Description
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99 Press release, dated July 29, 1999.
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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.
SODEXHO MARRIOTT SERVICES, INC.
Date: July 29, 1999 By: /s/ LAWRENCE E. HYATT
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Lawrence E. Hyatt
Senior Vice President and
Chief Financial Officer
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INDEX TO EXHIBITS
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Exhibit No. Description
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99 Press release issued July 29, 1999, relating to
Sodexho Marriott Services, Inc.'s Investor Conference
held in New York, New York.
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[SODEXHO MARRIOTT SERVICES, INC. COMPANY LOGO]
FOR IMMEDIATE RELEASE Media Relations:
Kathy Boyle (301) 987-4330
Investor Relations:
Leeny Oberg (301) 987-4333
SODEXHO MARRIOTT SERVICES, INC. UNVEILS NEW CORPORATE GROWTH STRATEGIES
Goals call for 20% compound annual growth in EPS,
6% compound annual growth in sales
NEW YORK, NEW YORK, July 29, 1999- At a meeting with securities analysts
and money managers held here today, Michel Landel, President and Chief Executive
Officer of Sodexho Marriott Services, Inc. (NYSE:SDH), outlined his goals for
the nation's largest provider of food and facilities management services to the
corporate, education and health care markets. In his introductory remarks, Mr.
Landel said, "Our goal is to grow earnings per share at a 20% compounded annual
growth rate, while achieving an average of 6% annualized sales growth over the
next three years."
Mr. Landel detailed key elements of his plans for accelerating growth.
These include focusing on high growth and under-penetrated markets through
adopting a market segmentation approach for all of the Company's business units,
encouraging a "client-focused" culture, investing in people and infrastructure,
and building a "sales driven" organization. This focus, Mr. Landel noted, would
enable the Company to better serve the needs of its clients; improve labor and
food management productivity and quality; and result in higher retention of
existing clients.
REVIEW OF BUSINESS SEGMENTS
Tom Mulligan, President, Corporate Services; Tony Alibrio, Executive Vice
President and President, Health Care Services; Bill Hamman, Executive Vice
President and President, Education
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Services; and Jim Seaton, President, Schools Services provided overviews of
their respective markets, the Company's current performance and the
opportunities to improve client satisfaction and the operating results of the
Company. Though the clients within these markets have an array of needs and
preferences, the macro trends are comparable. Consolidation is taking place
within many of these markets, as well as budget restraints and shortages of
labor and other resources. The opportunity for the Company lies in creating
solutions customized for its clients, understanding changes in the marketplace
and, most importantly, the priorities of the individual client. Success within
the Company's divisions will be driven by: growth with existing clients; focus
on food and facilities management in attractive market segments; improving
margins, and retention of existing client accounts.
FINANCIAL STRATEGIES
Larry Hyatt, Senior Vice President and Chief Financial Officer, conducted a
financial review of the first nine months ended May 28, 1999. Mr. Hyatt stated
that the Company continues to believe that it will finish the current fiscal
year with a pro forma earnings per share performance of approximately $0.90 per
share, net of one-time items that have a net positive impact of $.04 per share.
Mr. Hyatt explained, "Our financial strategy is straight forward, and is a
critical part of meeting our EPS growth goals." The strategy calls for the
Company to: maximize cash flow; reduce debt levels; increase margins; and invest
in the business to support future growth and achieve additional cost
efficiencies. Mr. Hyatt also detailed the Company's investment strategy for
Fiscal 2000, which included reinvesting approximately $20 million of savings
derived from synergies into recruiting and training, in addition to accelerating
the development of new products and the strengthening of the Company's systems
and infrastructure.
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SUMMATION
In closing, Mr. Landel said, "We believe the trend toward outsourcing will
continue to grow. We see it across all of our business segments as companies
with multiple locations and facilities are looking for a single source to
provide a range of outsourced services. By increasing our retention rates,
segmenting our markets and implementing our strategic plans, I believe this
company can accelerate its growth in the next few years. By executing our
strategic plans, I further believe that we can achieve 20% growth in earnings
per share over the next three years while, at the same time, enhancing
shareholder value."
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SODEXHO MARRIOTT SERVICES, INC. is the largest provider of outsourced food
and facilities management in North America, with more than $4 billion in annual
sales. The Company offers a variety of innovative outsourcing solutions,
including food services, housekeeping, grounds keeping, plant operations and
maintenance, and other support services to the corporate, health care and
education markets. The Company is one of the top 50 employers in the United
States with 103,000 employees. The Company's headquarters is located at 9801
Washingtonian Boulevard, Gaithersburg, MD 20878.
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NOTE: This press release contains "forward-looking statements" within the
meaning of the federal securities laws. These statements are based on the
Company's current expectations and relate to anticipated future events that are
not historical facts, such as the Company's business strategies and their
intended results. The forward-looking statements in this release are subject to
numerous risks and uncertainties that could cause the Company's future
activities and results of operations to differ materially from those expressed
or implied in the forward-looking statements. These risks and uncertainties
include: the ability of the Company to adapt to recent changes in its corporate
structure, the potential adverse impact of the Company's substantial
indebtedness, competition in the food services and facilities management
industries, the effects of general economic conditions, the ability of the
Company to retain existing clients and obtain new clients, the ability of the
Company to remedy any computer-related issues resulting from the advent of the
Year 2000, and other factors described from time to time in the Company's
filings with the Securities and Exchange Commission, including the Company's
Transition Report on Form 10-K filed with the Securities and Exchange Commission
on November 23, 1998. As a result of these risks and uncertainties, readers are
cautioned not to place undue reliance on the forward-looking statements made in
this press release or elsewhere from time to time by or on behalf of the
Company. The Company assumes no obligation to update any forward-looking
statements.
