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 22, 1999
APAC CUSTOMER SERVICES, 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 847/374-4980
(Former name or former address, if changed since last report)
Item 5. Other Events
On September 22, 1999, APAC Customer Services, Inc. (the
"Company") announced that it had signed an amendment (the "Amendment") to
its Agreement for In-Bound Telemarketing, dated August 8, 1995 (the
"Agreement"), with United Parcel Service General Services Co. ("UPS"). The
Amendment extends the Agreement for three years, beginning September 20,
1999. For the year ended December 31, 1998 and the six months ended June
30, 1999, the Company generated revenue under the Agreement of
approximately $68 million and approximately $28 million, respectively.
After the initial three-year extension, the Agreement is subject
to automatic 1-year renewals. Pursuant to the Amendment, UPS has the right
to terminate any of the services contemplated by the Agreement or the
entire Agreement upon prior notice to the Company. In the event of
termination, the affected services would be phased out over a period of not
less than nine months from the notice of termination. UPS agreed to use
its best efforts not to reduce revenue for the terminated services under
the Agreement by more than one third per quarter during the ramp down
period.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit No. Description of Document
99.1 Press release, dated September 22, 1999, issued
by the Company.
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 30, 1999 APAC CUSTOMER SERVICES, INC.
By: /s/ Gary Holter
---------------------------
Name: Gary Holter
Title: Senior Vice President and
Chief Financial Officer
EXHIBIT INDEX
Exhibit Number Description
-------------- -----------
99.1 Press release, dated September 22, 1999, issued by
APAC Customer Services, Inc. (the "Company").
EXHIBIT 99.1
Investor Contact: Media Contact:
Gary Holter, CFO David Reiners
APAC Customer Services, Inc. Manager, APAC
Office: (847) 374-5478 Corporate Communications
or Carmelina Stoklosa Office: (319) 896-4845
Vice President/Treasurer Cellular: (319) 389-5254
Office: (847) 374-1954 Pager: (800) PAGE MCI
Pin #1799500
For Immediate Release
APAC Customer Services, Inc. Extends,
Expands Customer Care Agreement with UPS
DEERFIELD, Illinois, September 22, 1999 - APAC Customer Services, Inc.
(NASDQ:APAC), has signed a multi-year extension to its current agreement
with United Parcel Service of America (UPS). The original agreement was
signed in 1995 to provide network-wide customer care outsourcing.
APAC's customer-handling applications are expected to expand
its customer care network and create additional opportunities for APAC
employees.
Ted G. Schwartz, Chairman and CEO of APAC Customer Services,
said, "We are delighted to expand our relationship with UPS. It validates
our strategic model, where we can partner with outstanding companies such
as UPS, http://www.ups.com to create a highly effective customer management
delivery system. Together with UPS, we're committed to raising customer
service and quality performance to new levels."
ABOUT APAC CUSTOMER SERVICES, INC.
Founded in 1973 and headquartered in the Chicago suburb of Deerfield,
Illinois, with corporate offices located nationally, APAC Customer
Services, Inc., is one of the nation's leading, most technologically
advanced providers of business services that strengthen and improve
customer relationship management programs, Internet services and call
center network consolidation. In addition, APAC provides sophisticated data
enhancement services, operations consultation and e-commerce program
development, all to a growing list of blue-chip companies that includes
some of the most recognized names in American business and industry. Some
of the clients who seek APAC's high technology and business services
expertise include those in telecommunications, health care/pharmaceutical,
financial services, insurance and travel and hospitality. APAC Customer
Services' more than 60 customer interaction centers and approximately
18,000 employee stand ready to handle any and all customer interaction
needs. For more information, call 1- (800)OUTSOURCE and visit the company
on the Web at: http://www.apaccustomerservices.com.
Forward-looking Statements
Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that involve
certain risks and uncertainties that could cause actual results to differ
materially, including potential fluctuations in results of operations, the
market for outsourced customer relationship management programs, the impact
of competitive products and services and risk factors listed in APAC
Customer Services' registration statement on Form 10-K for the fiscal year
ended January 3, 1999.
