UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): March 31, 2011
MedQuist Inc.
(Exact Name of Registrant as Specified in Charter)
New Jersey | 0-19941 | 22-2531298 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
9009 Carothers Parkway
Franklin, Tennessee 37067
(Address of Principal Executive Offices) (Zip Code)
Franklin, Tennessee 37067
(Address of Principal Executive Offices) (Zip Code)
(866) 295-4600
(Registrants telephone number, including area code)
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
TABLE OF CONTENTS
Item 2.05 Costs Associated with Exit or Disposal Activities. | ||||||||
Item 8.01 Other Events | ||||||||
SIGNATURES |
Item 2.05 Costs Associated with Exit or Disposal Activities.
Restructuring Plan Associated With Completion of the Integration of Spheris Operations.
MedQuist Inc. (the Company) announced that on March 31, 2011, its senior management team approved
and the Company implemented a restructuring plan associated with the completion of the integration
of the Companys acquisition of the Spheris operations. The plan consists of (i) a reduction in
workforce termination costs of $1.0 million for employee severance and (ii) a charge of $1.5
million, which represents $2.5 million of future lease payments on MedQuist Inc.s former corporate
headquarters in Mount Laurel, New Jersey and its former data center in Sterling, Virginia, offset
by expected sublease rentals. The reduction of workforce termination costs will consist entirely
of severance costs, and the severance costs will result in future cash expenditures.
Item 8.01 Other Events
On March 31, 2011, in connection with the conclusion of the litigation matters related to the
Companys billing practices, the Companys board of directors terminated the Companys customer
accommodation program and reversed accruals of $9.7 million, resulting in a non-cash reduction of
expenses of approximately $9.7 million in the first quarter of 2011.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MedQuist Inc. |
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Date: April 6, 2011 | By: | /s/ Mark R. Sullivan | ||
Mark R. Sullivan | ||||
General Counsel, Chief Compliance Officer and Secretary | ||||