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): OCTOBER 22, 1999
SAFELITE GLASS CORP.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
(STATE OR OTHER JURISDICTION OF INCORPORATION)
333-21949 13-3386709
(COMMISSION FILE NUMBER) (I.R.S. EMPLOYER IDENTIFICATION NUMBER)
1105 SCHROCK ROAD, COLUMBUS, OHIO 43229
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP CODE)
(614) 842-3000
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
NONE
(FORMER NAME AND FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
Item 5. Other Events
Allstate Insurance Company (Allstate) has advised Safelite that it does not
intend to renew its Best Efforts Agreement with Safelite for autoglass repair,
replacement, and administrative services when that contract expires in October
2000. Allstate has further advised Safelite that it intends to enter into
negotiations with Lynx Services from PPG to provide these services when the
current contract expires. During Safelite's fiscal year ended March 1999,
Allstate revenues totaled approximately $120 million or 14% of Safelite's total
sales. The actual impact of this action by Allstate on Safelite's prospective
sales will be dependent on several factors, including the definitive contract
terms to be negotiated by Allstate with Lynx Services, and is therefore not
presently determinable. Although the Company currently believes that it will
retain a portion of its sales to Allstate, the Company expects that sales for
its fiscal year ended March 2001 will be reduced by a material amount.
Safelite is planning actions to reduce its overall cost structure in light of
current industry conditions as well as this development. The Company expects
that it will record restructuring charges in the quarter ended January 1, 2000
related to this effort.
This report contains forward-looking statements concerning the Company's
operations and economic performance. These statements are based upon a number of
assumptions and estimates which are inherently subject to significant
uncertainties and contingencies, many of which are beyond the control of the
Company. Some of these assumptions inevitably will not materialize, and
unanticipated events will occur which will affect the Company's results.
Statements contained in this report that are prefaced with the words "intend,"
"will," and similar expressions, are intended to identify forward-looking
statements regarding events, conditions and financial trends that may affect the
Company's future results of operations. These statements are based on the
Company's current expectations and estimates as to prospective events and
circumstances about which the Company can give no firm assurance. Further, any
forward-looking statement speaks only as of the date on which such statement is
made, and the Company undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on which such
statement is made. As it is not possible to predict every new factor that may
emerge, forward-looking statements should not be relied upon as a prediction of
actual future financial condition or results. These forward-looking statements,
like any forward-looking statements, involve risks and uncertainties that could
cause actual results to differ materially from those projected or anticipated.
Such risks and uncertainties include product demand, regulatory uncertainties,
the effect of economic conditions, the impact of competitive products and
pricing, changes in customers' ordering patterns and costs and expenses
associated with any Year 2000 issues associated with the Company, including
updating software and hardware and potential system interruptions. The foregoing
list should not be construed as exhaustive.
SIGNATURE
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.
SAFELITE GLASS CORP.
Dated: October 27, 1999 By: /s/ Douglas A. Herron
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Name: Douglas A. Herron
Title: Chief Financial Officer