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) April 21, 1997
APAC TeleServices, Inc.
(Exact name of registrant as specified in charter)
Illinois 0-26786 36-2777140
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
One Parkway North Center, Suite 510, Deerfield, Illinois 60045
(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 April 21, 1997, the 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 April 21, 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.
APAC TELESERVICES, INC.
Date: April 25, 1997 By: /s/ Marc S. Simon
Marc S. Simon, Chief
Financial Officer
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT: Marc S. Simon
Chief Financial Officer
(847) 945-0055
APAC REPORTS RECORD FIRST QUARTER REVENUES AND EARNINGS
(Deerfield, IL, April 21, 1997) - APAC TeleServices, Inc. (NASDAQ Symbol
"APAC"), the outsourced customer service and sales company, today reported
financial results for its first quarter of fiscal 1997.
APAC announced record revenue of $90.3 million for the thirteen weeks ended
March 30, 1997, up 88% from $48.1 million in the same period a year ago. Net
income increased 80% to $8.5 million for the 1997 first quarter compared to $4.7
million for the first quarter of 1996. Earnings per share in the first quarter
of 1997 increased to $0.18 as compared to $0.10 in the same quarter last year.
Net revenue for the Sales Solutions division increased 75% to $45.8 million
for the first quarter of 1997, compared to $26.1 million for the first quarter
of 1996, as a result of increased call volume from existing clients primarily in
the telecommunications industry. The Service Solutions division's net revenue
was $44.5 million, up 102% from $22.0 million in the same period a year ago as a
result of higher call volumes associated with long-term contracts.
APAC's revenues, margins and earnings were affected by a mutual decision
that results in APAC absorbing certain costs incurred in the first quarter
related to the staffing requirements of a large outsourcing client. APAC also
anticipates a reduction in expected revenues, margins and earnings over the
balance of 1997 with respect to that account.
APAC TeleServices, Inc., headquartered in the Chicago suburb of Deerfield,
Illinois, operates 65 customer contact centers and has more than 14,000
employees in 13 states. APAC's clients include some of the best-managed, most
highly respected corporations in America. These companies represent a wide
range of industries including consumer and business products, financial
services, insurance, parcel delivery, technology, telecommunications and
utilities. APAC optimizes the value of a client's customer relationships by
increasing sales and improving customer service.
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 its 1996 Form 10K, which describe other important factors that may impact
APAC's business, results of operations and financial condition.
APAC TELESERVICES, INC.
STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT FOR PER SHARE DATA)
<TABLE>
<CAPTION>
Thirteen Weeks Ended
March 30, March 31,
1997 1996
(Unaudited)
<S> <C> <C>
Net revenue $ 90,318 $ 48,144
Operating expenses:
Cost of services 65,363 34,386
Selling, general and administrative 10,953 6,191
expenses
Total operating 76,316 40,577
Expenses
Income from operations 14,002 7,567
Interest income (expense), net (329) 228
Income before income taxes 13,673 7,795
Provision for income taxes 5,200 3,080
Net income $ 8,473 $ 4,715
Net income per share $ 0.18 $ 0.10
Weighted average number of shares
outstanding 48,001 47,678
</TABLE>
--END--
