The Advisory Board Company (NASDAQ:ABCO) Files An 8-K Results of Operations and Financial Condition
Item2.02
|
Results of Operations and Financial Condition |
On January3, 2017, The Advisory Board Company (the Company)
issued a news release announcing a restructuring plan as part of
its ongoing efforts to better align its resources and health care
business strategy to meet member needs and market demand as well
as to improve efficiency and future growth. The news release
includes the Companys expectations regarding its performance and
results for the fiscal year ended December31, 2016 with respect
to financial measures including revenue, non-GAAP revenue
(excluding to-be-exited programs), adjusted EBITDA, adjusted
EBITDA (excluding to-be-exited programs), and
adjusted EBITDA margin (excluding to-be-exited programs). A copy
of the Companys news release is furnished as Exhibit 99.1 to this
report.
In accordance with
General Instruction B.2 to Form 8-K, the information contained in
Item 2.02, Item 7.01, and Item 9.01 of this current report,
including Exhibit 99.1 hereto, is being furnished with the
Securities and Exchange Commission and shall not be deemed filed
for purposes of Section18 of the Securities Exchange Act of 1934,
as amended, or otherwise subject to the liabilities under such
section. Furthermore, such information shall not be deemed to be
incorporated by reference in any filing under the Securities Act
of 1933, as amended, or the Securities Exchange Act of 1934, as
amended, unless specifically identified as being incorporated
therein by reference.
| Item2.05 |
Costs Associated with Exit or Disposal Activities |
The information
set forth in Item 2.02 of this report is incorporated herein by
reference.
On January3, 2017,
the Company approved the restructuring plan described in Item
2.02 of this report. In connection with such restructuring plan,
the Company will reduce its workforce as a part of a broader
effort to more closely align operating expenses with the Companys
long-term strategic initiatives and current macroeconomic
business conditions. The reduction-in-force will affect
approximately 220 employees and is expected to be completed
during fiscal year 2017. The Company expects to recognize
approximately $7 to $9million of pre-tax restructuring charges in
fiscal year 2017 in connection with this reduction-in-force,
consisting of severance and other employee termination
benefits.
Annual cost
savings of approximately $25million are expected upon completion
of the restructuring plan. The total cash and non-cash cost of
the plan is expected to be approximately $45 to $55 million and
will be incurred during 2017.
In the event that
the restructuring charges ultimately are determined to be
materially different from the estimates set forth herein, the
Company will amend this report or disclose the revised
information in another periodic report filed by the Company with
the Securities and Exchange Commission.
| Item7.01 | Regulation FD Disclosure |
The information
set forth in Item 2.02 of this report and the copy of the
Companys news release furnished as Exhibit 99.1 to this report
each are incorporated herein by reference.
| Item9.01 | Financial Statements and Exhibits |
(d)
Exhibits
|
Exhibit No. |
Exhibit |
|
| 99.1 |
News release of The Advisory Board Company dated January3, 2017. |
About The Advisory Board Company (NASDAQ:ABCO)
The Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries. The Company’s healthcare programs address a range of clinical and business issues, including physician alignment and engagement, network management and growth strategy, value-based care and population health, revenue cycle, clinical operations and supply chain. Its higher education programs support colleges and universities in enrollment management; academic programming and student learning; faculty recruitment and retention; student advising and success; alumni affairs and advancement, and college and university operations. The Company offers distinct membership programs, across four areas, which include best practices research and insight, performance technology software, consulting and management services, and data- and tech-enabled services. Its best practices research and insight programs provide the foundation for all of its other programs. The Advisory Board Company (NASDAQ:ABCO) Recent Trading Information
The Advisory Board Company (NASDAQ:ABCO) closed its last trading session up +1.15 at 34.40 with 518,959 shares trading hands.