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)
(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
Name: Douglas A. Herron Title: Chief Financial Officer |