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) September 9, 1997
APAC TELESERVICES, INC.
(Exact name of registrant as specified in charter)
Illinois 0-26786 36-2777140
(State or other jurisdiction (Commission (IRS Employer
of incorporation) file number) Identification No.)
One Parkway North Center, Suite 510, Deerfield, IL 60015
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code 847/945-0055
N/A
(Former name or former address, if changed since last report)
Item 5. OTHER EVENTS
On September 9, 1997, Registrant issued a press release, a copy of which is
attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit No. Description of Document
(99.1) Press release dated September 9, 1997,
issued by the Registrant.
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.
Date: September 10, 1997 APAC TELESERVICES, INC.
By: /s/ Marc S. Simon
Marc S. Simon, Chief Financial Officer
FOR IMMEDIATE RELEASE
INVESTOR CONTACT:
Marc S. Simon
Chief Financial Officer
(847) 374-4980
MEDIA CONTACT:
Kevin R. Petschow
Director, Corporate Communications
(847) 374-1964
APAC UPDATES BUSINESS EXPECTATIONS
AND GROWTH PROSPECTS
(Deerfield, Ill. -- September 9, 1997) -- APAC TeleServices, Inc. (NASDAQ
symbol: APAC), a leading provider of outsourced customer service and sales,
commented today on its near- and long-term business expectations. Although the
third and fourth quarters of 1997 are expected to result in reduced revenue and
earnings, the company's prospects for growth in 1998 and beyond remain very
strong.
The effects of a labor strike within a large APAC client, coupled with
tactical marketing changes by other clients are expected to reduce revenue in
the third quarter of 1997 to approximately $78 million to $80 million, and in
the fourth quarter to approximately $85 million to $90 million. These events,
coupled with acquisition related charges and start up expenses for anticipated
large-scale service ramp-ups for new clients, are expected to lower APAC's
earnings per share to approximately $0.04 to $0.06 in the third quarter of 1997
and $0.06 to $0.08 in the fourth quarter of 1997. For the full year 1997, APAC
expects revenue growth of approximately 25%. Separately, the company announced
major new business awarded under a letter of intent, that once under contract,
is expected to contribute significantly to growth in 1998.
Looking ahead, the company identified factors expected to drive its growth
in 1998. "First, as we have absorbed the tremendous growth in 1996 and 1997, we
have emerged with a very strong track record of service, quality and results,"
said Theodore G. Schwartz, APAC's Chairman and CEO. "For this, we recognize and
appreciate the tireless and highly effective efforts of the women and men of
APAC. Current and prospective clients, which include some of the best managed
companies in the nation, recognize and value our operational excellence.
Superior performance is obviously a key differentiator in the market place and
key to growth among existing and new clients. Second, we have significantly
revamped our marketing and business development efforts to accelerate growth
outside of existing clients. That focus has already resulted in significant new
business as well as a very strong pipeline. Finally, we have made significant
investment in technology and in our acquisition of Paragren Technologies, which
will further fuel our success and enhance our leadership position through
flexibility, customization and significant value added to our clients'
businesses".
APAC, headquartered in the Chicago suburb of Deerfield, Ill., operates 70
customer contact centers and has more than 14,000 employees in 14 states.
APAC optimizes the value of its clients' customer relationships by
improving customer service, increasing sales, leveraging technology and managing
change for corporate growth. Clients include some of the best-managed, most
highly respected corporations in America. These companies represent a wide
range of industries including business and consumer products, financial
services, insurance, parcel delivery, retail, technology, telecommunications and
utilities.
APAC is ranked as the nation's largest provider of inbound and third
largest provider of outbound teleservices. The company's Web site address is
www.apacteleservices.com.
In August, APAC acquired through merger Paragren Technologies, Inc.,
specialists in software-based marketing to optimize customer relationships.
Paragren solutions enable corporate marketing professionals to perform on-line
exploratory analysis, descriptive and predictive modeling, promotion planning,
detailed customer segmentation, and campaign execution and evaluation. The
company is based in Reston, Va. Paragren's Web site address is
www.paragren.com.
Statements contained herein regarding APAC's expected growth, prospective
business opportunities and future expansion plans are forward-looking statements
that involve substantial risks and uncertainties. In accordance with the
Private Securities Litigation Reform Act of 1995, following are important
factors that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements: There can be no
assurance that APAC will be able to maintain or accelerate its growth rate,
effectively manage its rapid growth or maintain its profitability. There also
can be no assurance that APAC can build-out facilities in a timely and economic
manner. In the future, APAC may experience excess peak period capacity when it
opens a new call center or terminates or completes a large client program.
APAC's agreements with its clients generally do not assure that APAC will
generate a specific level of revenue, do not designate APAC as the client's
exclusive service provider, and are terminable by the clients on relatively
short notice. In addition, the amount of revenues APAC generates from a
particular client generally is dependent upon customers' interest in, and use
of, the client's products or services. Readers are encouraged to review the
Risk Factors section of APAC's most recent Prospectus dated November 4, 1996,
and Form 10K filed March 28, 1997, which describe other important factors that
may impact APAC's business, results of operations and financial condition.
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