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) November 6, 2001
IKON Office Solutions, Inc.
(Exact name of registrant as specified in its charter)
OHIO File No. 1-5964 23-0334400
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(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
incorporation) Number)
P.O. Box 834, Valley Forge, Pennsylvania 19482
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (610) 296-8000
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Not Applicable
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(Former name or former address, if changed since last report)
Item 9. Regulation FD Disclosure
IKON Office Solutions, Inc. (the "Company") has attached hereto certain
information to be furnished to analysts and investors at the Company's Analyst
and Investor Conference to be held on November 7, 2001. A live web cast of this
conference, along with presentation materials, will be available through the
Company's website in the Investors Relations Section. Please go to www.ikon.com,
click on Invest in IKON and select the Presentation Section. The web cast will
begin at 8:15 a.m. E.S.T. on November 7, 2001.
The content of the attached information is being furnished in
accordance with the requirements of Regulation FD.
Consolidated Balance Sheets
(unaudited)
September 30
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(in thousands) 2001 2000
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Assets
Cash and cash equivalents $ 80,351 $ 78,118
Restricted cash 128,365 91,914
Accounts receivable, less allowances of: 2001 - $23,510; 2000 - $35,322 641,059 723,051
Finance receivables, net 1,171,004 1,087,215
Inventories 299,776 321,471
Prepaid expenses and other current assets 95,381 102,196
Deferred taxes 98,701 108,578
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Total current assets 2,514,637 2,512,543
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Long-term finance receivables, net 2,176,205 2,084,102
Equipment on operating leases, net of accumulated amortization of:
2001 - $91,357; 2000 - $144,117 71,181 72,595
Property and equipment, net 208,618 246,006
Goodwill, net 1,260,888 1,318,197
Other assets 63,045 129,142
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Total Assets $ 6,294,574 $ 6,362,585
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Liabilities and Shareholders' Equity
Current portion of long-term debt $ 17,643 $ 176,629
Current portion of long-term debt, finance subsidiaries 1,229,631 1,238,950
Notes payable 183,688 42,216
Trade accounts payable 222,999 226,838
Accrued salaries, wages and commissions 126,280 143,644
Deferred revenues 185,261 195,790
Other accrued expenses 299,906 284,464
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Total current liabilities 2,265,408 2,308,531
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Long-term debt 599,608 606,861
Long-term debt, finance subsidiaries 1,366,108 1,405,449
Deferred taxes 446,059 415,656
Other long-term liabilities 218,513 184,996
Commitments and contingencies
Shareholders' Equity
Common stock, no par value: authorized 300,000 shares
Issued: 2001 - 150,128 shares; 2000 - 150,296 shares
Outstanding: 2001 - 141,776 shares; 2000 - 143,826 shares 1,012,302 1,013,750
Series 12 preferred stock, no par value: authorized 480 shares
Issued and Outstanding: 2001 - 0 shares; 2000 - 0 shares
Unearned compensation (3,745) (6,814)
Retained earnings 466,452 468,770
Accumulated other comprehensive loss (43,484) (7,773)
Cost of common shares in treasury: 2001 - 7,480 shares; 2000 - 5,430 shares (32,647) (26,841)
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Total Shareholders' Equity 1,398,878 1,441,092
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Total Liabilities and Shareholders' Equity $ 6,294,574 $ 6,362,585
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Consolidated Statements of Cash Flows
(unaudited)
Fiscal Year Ended September 30
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(in thousands) 2001 2000 1999
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Cash Flows from Operating Activities
Net Income $ 18,505 $ 29,082 $ 33,836
Additions (deductions) to reconcile net income to net cash
provided by operating activities of continuing operations:
Depreciation 119,993 133,012 134,638
Amortization 58,575 62,082 62,226
Provisions for losses on accounts receivable 7,758 21,631 31,765
Provision for deferred income taxes 42,411 57,409 24,971
Provision for lease default reserves 66,631 61,740 62,790
Restructuring and asset impairment charges 60,000 105,168
Gain on asset securitization (73) (26,856)
Extraordinary gain on early extinguishment of debt (3,049)
Gain on sale of investment (3,739)
Shareholder litigation settlement 101,106
Changes in operating assets and liabilities, net of effects from
acquisitions and divestitures:
Decrease (increase) in accounts receivable 77,133 (25,668) 41,154
Decrease in inventories 21,406 12,982 93,821
(Increase) decrease in prepaid expenses and
other current assets (1,525) 9,270 22,913
(Decrease) increase in accounts payable, deferred
revenues and accrued expenses (44,195) 49,955 (64,789)
Decrease in accrued shareholder litigation settlement (117,652)
Decrease in accrued restructuring (15,757) (21,471)
Other 914 2,872 2,048
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Net cash provided by operating activities of continuing
operations 411,849 373,551 519,623
Gain from discontinued operations (2,142) (2,526)
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Net cash provided by operating activities 409,707 371,025 519,623
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Cash Flows from Investing Activities
Cost of companies acquired, net of cash acquired (2,666) (3,768) (30,065)
Expenditures for property and equipment (85,880) (113,829) (103,462)
Expenditures for equipment on operating leases (58,790) (45,160) (52,382)
Proceeds from sale of property and equipment 44,382 18,170 19,347
Proceeds from sale of equipment on operating leases 16,554 15,390 21,573
Finance receivables - additions (1,815,282) (1,941,479) (1,415,672)
Finance receivables - collections 1,549,888 1,494,374 968,248
Proceeds from sale of finance subsidiaries' lease receivables 16,167 25,547 467,394
Repurchase of finance subsidiaries' lease receivables (275,000) (250,000)
Other 5,267 6,050 32
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Net cash used in investing activities (330,360) (819,705) (374,987)
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Cash Flows from Financing Activities
Proceeds from issuance of long-term debt 38,105 35,340 93,065
Short-term borrowings (repayments), net 201,280 (470) (45,817)
Long-term debt repayments (197,071) (51,257) (51,191)
Finance subsidiaries' debt - issuance 2,269,136 2,139,318 866,577
Finance subsidiaries' debt - repayments (2,316,905) (1,484,237) (962,195)
Dividends paid (22,695) (23,708) (23,689)
Deposit to restricted cash (36,451) (62,289) (29,625)
Purchase of treasury shares and other (3,934) (26,626) 2,304
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Net cash (used in) provided by financing activities (68,535) 526,071 (150,571)
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Effect of exchange rate changes on cash and cash equivalents (8,579) (2,659) 8,358
Net increase in cash and cash equivalents 2,233 74,732 2,423
Cash and cash equivalents at beginning of year 78,118 3,386 963
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Cash and cash equivalents at end of year $ 80,351 $ 78,118 $ 3,386
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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 thereunto duly authorized.
IKON OFFICE SOLUTIONS, INC.
By: /s/ WILLIAM S. URKIEL
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William S. Urkiel
Senior Vice President and
Chief Financial Officer
Dated: November 6, 2001