UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: February 12, 1998
Anicom, Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-25364 36-3885212
(State or Other Jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
6133 North River Road, Suite 1000, Rosemont, Illinois 60018
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (847) 518-8700
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Item 5. Other Events.
On February 11, 1998, the Registrant issued the press release attached as
Exhibit 99.1. The information contained in this press release is incorporated
herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 News Release of Registrant dated February 11, 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 duly authorized.
Anicom, Inc.
Dated: February 12, 1998 By:/S/DONALD C. WELCHKO
Donald C. Welchko
Chief Financial Officer
Exhibit 99.1
NEWS RELEASE [Anicom, Inc. LOGO]
RE: 6133 N. River Road, Suite 1000
Rosemont, IL 60018
(847) 518-8700
TRADED: NASDAQ (ANIC)
For Further Information:
AT THE COMPANY
Alan Anixter Scott Anixter Carl Putnam Don Welchko
CHB Chairman & CEO President & COO CFO
FOR IMMEDIATE RELEASE
FEBRUARY 11, 1998 Media Contact: Mark Perlman
The Weiser Group
312/368-6732 [email protected]
ANICOM ANNOUNCES RECORD YEAR
ROSEMONT, ILL. February 11, 1998 -- Anicom, Inc. (Nasdaq: ANIC), a national
leader and specialist in the distribution of multimedia wiring systems, today
announced record net sales of $244 million for the year ended December 31, 1997,
an increase of 110 percent compared with net sales of $116 million in the prior
year.
Scott C. Anixter, chairman and CEO, commented, "This year has been very
successful for Anicom. In addition to achieving record sales, the company also
completed five acquisitions." Similar to other companies, Anicom has implemented
a major new information technology system. The company took a one time,
non-recurring fourth quarter charge of $5.6 million for reengineering costs,
including those associated with the implementation of this new system. Such
accounting treatment is required by recent FASB Emerging Issues Task Force
decisions which mandate that companies expense these types of reengineering
costs.
Anixter further added, "The company experienced strong sales and operating
results in the fourth quarter of 1997. However, we chose our slowest sales
period, the last three weeks of December, in which to implement our new
information technology system. We chose to sacrifice sales productivity during
this period to minimize the effect of the systems conversion on our customers
and to allow complete implementation without any impact on 1998 results. For the
first nine months of 1997, Anicom earned $.21 per share and will break even for
the full year after this special charge. Excluding the impact of sacrificed
sales in December and the one time, non-recurring accounting charges, management
believes that net earnings for 1997 would have been in line with analyst
expectations of $.30 per share."
Alan B. Anixter, chairman of the board, said, "With the recent integration of 12
companies representing approximately $300 million in additional revenue, it was
necessary to reengineer our business process to accommodate our future growth.
Our new information technology system, which is year 2000 compliant, will allow
us to continue our integrated growth strategy into the next millenium."
More......
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Anicom, Inc.
Don Welchko, chief financial officer, stated, "The strength of our balance sheet
coupled with the expected benefits of this new information technology system
will make a strong company even stronger. Since these costs no longer can be
capitalized, we expect that the required accounting treatment will enhance the
contribution of these investments to our future profitability. We are committed
to maximizing operating leverage through these types of efficiencies that we
believe will result in margin improvement being driven down to the bottom line."
Scott C. Anixter, further commented, "During 1997, we expanded product lines,
geographic presence and sales talent to continue our dynamic integrated growth
strategy. We are continuing to pursue the pipeline of acquisition opportunities
as they develop, while also continuing our push for strong internal growth."
Headquartered in Rosemont, Illinois, Anicom with over 50 locations nationwide,
provides products that "interconnect the Internet" and serves as a vital link to
the ever-growing global communications industry.
In compliance with the Safe Harbor Provision of the Private Securities
Litigation Reform Act of 1995, the company notes the statements contained in
this press release that are not historical facts may be forward-looking
statements that are subject to a variety of risks and uncertainties more fully
described in Anicom's filings with the Securities and Exchange Commission
including, without limitation, those described under "Risk Factors" in Anicom's
Resale Prospectus dated December 3, 1997 and in Anicom's Annual Report on Form
10-KSB for the year ended December 31, 1996. Anicom wishes to caution readers of
this press release that these risks and uncertainties could cause Anicom's
actual results in 1998 and beyond to differ materially from those expressed in
any forward-looking statements made by, or on behalf of, Anicom. These risks and
uncertainties include, without limitation, general economic and business
conditions affecting the industries of Anicom's customers in existing and new
geographical markets, competition from national and regional distributors, the
availability of sufficient capital, Anicom's ability to identify the right
product mix and to maintain sufficient inventory to meet customer demand,
Anicom's ability to successfully acquire and integrate the operations of
additional businesses and Anicom's ability to operate effectively in
geographical areas in which it has no prior experience. The words "believe,"
"expect," "plans," "anticipated" and "intends" used in this press release as
they relate to Anicom or its management are generally intended to identify such
forward-looking statements.
# # #
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Anicom, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
-------- --------- -------- --------
(in thousands except (in thousands except
per share data) per share data)
Net Sales $ 70,833 $ 39,561 $243,664 $115,993
Cost of Sales 54,937 30,197 187,098 87,442
Total operating expenses
and other 20,767 7,851 55,078 24,615
-------- --------- -------- --------
Income (loss) from operations (4,871) 1,513 1,488 3,936
-------- --------- -------- --------
Total other income (expense) (311) 43 (537) 309
-------- --------- -------- --------
Income (loss) before income taxes (5,182) 1,556 951 4,245
Provision (benefit) for income taxes (1,681) 701 650 1,622
-------- --------- -------- --------
Net income (loss) (3,501) 855 301 2,623
Less: Dividend on preferred stock -- -- (297) --
-------- --------- -------- --------
Net income (loss) available to common
stockholders $ (3,501) $ 855 $ 4 $ 2,623
======== ========= ======== ========
Weighted average common shares
outstanding:
Basic 20,620 15,558 17,476 13,384
======== ========= ======== ========
Diluted 20,620 16,005 17,476 13,580
======== ========= ======== ========
Earnings per common share:
Basic $ (0.17) $ 0.06 * $ -- $ 0.20 *
======== ========= ======== ========
Diluted $ (0.17) $ 0.05 * $ -- $ 0.19 *
======== ========= ======== ========
* Prior year Earnings Per Share has been restated as required by FAS No. 128,
Earnings Per Share.
------------------
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Anicom, Inc.
Condensed Consolidated Balance Sheet
December 31
(Unaudited)
1997 1996
--------- ---------
(in thousands)
Assets
Current assets $ 131,441 $ 57,539
Fixed assets - net 5,771 2,820
Other assets, primarily goodwill 78,720 27,595
--------- ---------
Total Assets $ 215,932 $ 87,954
========= =========
Liabilities and stockholders' equity
Current liabilities $ 63,233 $ 24,143
Long-term liabilities 8,549 3,952
Stockholders' equity 144,150 59,859
--------- ---------
Total liabilities and stockholders' equity $ 215,932 $ 87,954
========= =========
