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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): July 7, 1999
KELLSTROM INDUSTRIES, INC.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 0-23764 13-3753725
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
1100 International Parkway, Sunrise, Florida 33323
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (954) 845-0427
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(Former Name or Former Address; if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
On July 7, 1999, Kellstrom Industries, Inc. (the "Registrant") issued a
press release announcing that it had settled a lawsuit brought by the Estate of
the late Co-Chairman of the Registrant. A copy of the Press Release issued by
the Registrant is attached hereto as Exhibit 99, and is incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) EXHIBITS.
The Exhibits to this Form 8-K are listed on the Exhibit Index and
are incorporated herein by reference.
SIGNATURE
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.
Date: July 9, 1999 KELLSTROM INDUSTRIES, INC.
By: /s/ Zivi R. Nedivi
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Zivi R. Nedivi
President and Chief Executive Officer
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EXHIBIT INDEX
EXHIBIT NO.:
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99 Press Release issued by the Registrant on July 7, 1999
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(LOGO) KELLSTROM INDUSTRIES, INC.
FOR IMMEDIATE RELEASE
KELLSTROM INDUSTRIES SETTLES LAWSUIT
Sunrise, FL - July 7, 1999 -- Kellstrom Industries, Inc. [NASDAQ:KELL] today
announced that it has settled a lawsuit brought by the Estate of the late
Co-Chairman of Kellstrom, with respect to, among other things, a claim alleging
entitlement to a stock option grant in late 1996.
In settling the case, the Company continues to deny all of the allegations
contained in the lawsuit. As reported in the Company's 1998 Form 10-K, the
Company believes that the claims are without merit. The settlement, however,
was entered into in order to limit the expense of litigating the suit as well
as the protracted use of management's time and related corporate resources.
For the second quarter ended June 30, 1999, the Company expects to record an
estimated one-time pre-tax charge of approximately $2.2 million (which
translates to approximately 8 cents per diluted share on a one-time after-tax
basis) to fulfill its obligation under the settlement and for accrued legal
expenses.
Kellstrom Industries, Inc. is a leader in the airborne equipment segments of the
international aviation services after-market. Kellstrom's principal business is
the purchasing, overhauling (through subcontractors), reselling and leasing or
aircraft, avionics and aircraft rotables, and engines and engine parts. The
Company is also a leading international after-market reseller of turbo-jet
engines and turbo-jet engine parts for helicopters and large cargo transport
aircraft for which it also supplies airframe material. The Company specializes
in providing engines and parts for large turbo-fan engines manufactured by CFMI,
General Electric, Pratt & Whitney and Rolls Royce. The Company is also an
approved supplier to an international customer base including major domestic and
international airlines, original equipment manufacturers and engine overhaul
shops.
The Company, from time to time, may discuss forward-looking information. This
press release contains forward-looking statements. These forward-looking
statements are based on many assumptions and factors, and are subject to many
conditions, including the Company's continuing ability to effectively integrate
the acquired companies, acquire adequate inventory and to obtain favorable
pricing for such inventory, the ability to arrange for the repair of aircraft
engines by third-party contractors prior to resale or lease, competitive pricing
for the Company's products, customer concentration, demand for the Company's
products which depends upon the condition of the airline industry, ability to
collect receivables, government regulation, and the effects of increased
indebtedness as a result of the Company's business acquisitions. Except for the
historical information contained in this release, all forward-looking
information are estimates by the Company's management and are subject to various
risks and uncertainties that may be beyond the Company's control and may cause
results to differ from management's current expectations.
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CONTACT: or KELL'S INVESTOR RELATIONS COUNSEL:
Kellstrom Industries, Inc. The Equity Group Inc.
(954) 845-0427 Linda Latman (212) 836-9609
Zivi R. Nedivi, Pres. & CEO Bob Goldstein (212) 371-8660
Michael W. Wallace, CFO www.theequitygroup.com
Yoav Stern, Chairman
www.kellstrom.com
1100 INTERNATIONAL PARKWAY * SUNRISE, FLORIDA 32323
TEL 954 845 0427 * FAX 954 858 2449
