APAC Customer Services, Inc. Announces Third Quarter 2004 Results.DEERFIELD Deerfield, towns, United States Deerfield. 1 Village (1990 pop. 17,327), Cook and Lake counties, NE Ill., a residential suburb of Chicago; inc. 1903. The huge Sara Lee Bakery is its major industry, and there is other light manufacturing. , Ill. -- APAC Customer Services
APAC Customer Services, Inc. is a provider of customer interaction solutions to large corporations in the communications, financial services, insurance, healthcare, logistics, publishing, and hospitality , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :APAC APAC Australian Partnership for Advanced Computing APAC Agricultural Policy Analysis Center APAC Asia and Pacific APAC Asian Pacific American Coalition APAC Adapted Physical Activity Council (American Alliance for Health) ), a leading provider of customer interaction solutions, today reported financial results for its third quarter ended September September: see month. 26, 2004. The Company reported a net loss of $2.3 million, or $.05 per share, on revenue of $64.6 million compared to net income of $.3 million, or $.01 per share, on revenue of $79.7 million in the same period a year ago. Revenue decreased 19% from the prior year primarily due to a decision by Comcast Comcast Corporation, (NASDAQ: CMCSA) is the largest[1] cable television (CATV) company and the second largest Internet service provider in the United States. to bring certain programs in house and a cutback cut·back n. 1. A decrease; a curtailment: "The political effects of food cutbacks could be devastating" New York Times. 2. in marketing efforts by several telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. clients. Revenue decreased 5% from the second quarter principally due to lower pricing on certain client programs and reduced marketing services. Gross margin of 10.2% for the quarter declined from 14.0% in the second quarter primarily due to the impact of lower pricing, higher labor costs, and expenses associated with operational improvement initiatives. Gross margin decreased by 7.8 percentage points from the third quarter of 2003 due to these same factors and higher overhead costs overhead costs see fixed costs. as a percent of revenue. Selling, general and administrative expenses declined $2.2 million and remained virtually unchanged as a percent of revenue in comparison to prior year. As of September 26, 2004, the Company reported cash and cash equivalents of $10.6 million, a slight increase during the quarter as strong cash collections more than offset the cash operating requirements. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Keller, APAC Customer Services' CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. commented, "We made progress this past quarter in winning customer care applications with both new and existing clients. We continued to upgrade our capabilities by investing in our people, processes and technology. "We expect to grow our top line sequentially and reduce our losses in the fourth quarter as we begin to ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale new business and start to realize efficiencies from our operational initiatives. Our goal is to build momentum during this quarter to position us for growth and profitability in 2005. While further anticipated investments to transform our Company will reduce the rate of our margin improvement in the near term, we believe these steps will lead us to industry leading revenue growth and better margins later next year." Senior management of the Company will hold a conference call to discuss financial results at 10:00 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT Thursday Thursday: see week. , October October: see month. 28th. About the Conference Call The conference call will be available live at the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of APAC Customer Services' website, www.apaccustomerservices.com. Please access the site at least 15 minutes prior to the scheduled start time in order to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. the required audio software (RealPlayer or Windows Media Player Digital jukebox software for Windows from Microsoft that plays a variety of audio, video and streaming formats including MP3, WMA, CD audio and MIDI. Starting with Version 6.2 in 1999, the Windows Media Rights Manager was added for securing copyrighted content. ). A replay of the webcast will be accessible through the Company's website for 7 days following the live event. For those unable to listen to the call via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , a replay of the call will be available until 11:00 p.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. on Thursday, November 4, 2004 by dialing (888) 203-1112 or (719) 457-0820 for international participants. The confirmation number for the replay is 902571. About APAC Customer Services, Inc. APAC Customer Services, Inc. (NASDAQ:APAC) is a leading provider of customer interaction solutions for market leaders in communications, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , insurance, healthcare, logistics, publishing, and travel and hospitality. APAC partners with its clients to deliver custom solutions that enhance bottom line performance. Founded in 1973 and headquartered in Deerfield, Illinois Deerfield is a village in Lake County, Illinois, United States. A portion of the village is in Cook County, Illinois, United States. The population was 18,420 at the 2000 census. It is one of the predominant suburbs that make up Chicago's North Shore region. , the company employs approximately 10,000 people and maintains 24 customer interaction centers. For more information, call 1-800-OUTSOURCE. APAC's comprehensive web site is at http://www.apaccustomerservices.com. Forward Looking Statements Certain statements, including discussions of the Company's expectations for 2004 and beyond, constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause actual results to differ materially from the future results expressed or implied by these statements. Refer to the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 28, 2003 and the Company's Second Quarter Report on Form 10-Q Form 10-Q See 10-Q. for the period ended June 27, 2004 for a description of such factors. This filing is available on a web site maintained by the SEC at http://www.sec.gov/.
APAC Customer Services, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except for per share data)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
------------------------------ ------------------------------
Increase Increase
Sept. 26, Sept. 28, (Decrease) Sept. 26, Sept. 28, (Decrease)
2004 2003 % 2004 2003 %
--------- --------- ---------- --------- --------- ----------
Net
revenue $64,626 $79,658 -19% $204,036 $247,939 -18%
Cost of
services 58,060 65,338 -11% 176,686 201,411 -12%
--------- --------- --------- --------- --------- ----------
Gross
profit 6,566 14,320 -54% 27,350 46,528 -41%
Operating
expenses:
Selling,
general and
administrative
expenses 9,967 12,124 -18% 30,468 38,039 -20%
Restructuring
and other
charges 159 1,800 -91% 2,009 1,800 12%
Asset
impairment
charge - 108 -100% 2,234 108 -
--------- --------- --------- --------- --------- ----------
Total
operating
expenses 10,126 14,032 -28% 34,711 39,947 -13%
--------- --------- --------- --------- --------- ----------
Operating
Income
(loss) (3,560) 288 - (7,361) 6,581 -
Interest
(income)
expense,
net 115 226 -49% 212 885 -76%
--------- --------- --------- --------- --------- ----------
Income
(loss)
before
income
taxes (3,675) 62 - (7,573) 5,696 -
Provision
(benefit)
for income
taxes (1,397) (228) - (2,878) 1,912 -
--------- --------- --------- --------- --------- ----------
Net income
(loss) $(2,278) $290 - $(4,695) $3,784 -
========= ========= ========= ========= ========= ==========
Income (loss)
per share:
Basic $(0.05) $0.01 $(0.10) $0.08
========= ========= ========= =========
Diluted $(0.05) $0.01 $(0.10) $0.08
========= ========= ========= =========
Weighted
average shares
outstanding:
Basic 49,455 49,442 49,452 49,434
========= ========= ========= =========
Diluted 49,455 49,475 49,452 49,465
========= ========= ========= =========
APAC Customer Services, Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(In thousands)
September 26, December 28,
Assets 2004 2003
----------------------------------------- ------------- -------------
Current Assets:
Cash and cash equivalents $10,621 $11,428
Accounts receivable, net 38,201 46,896
Other current assets 8,217 9,218
------------- -------------
Total current assets 57,039 67,542
Property and Equipment, net 22,010 24,147
Goodwill and Intangibles, net and Other
Assets 40,892 42,904
------------- -------------
Total Assets $119,941 $134,593
============= =============
Liabilities and Shareholders' Equity
-----------------------------------------
Current Liabilities:
Current maturities of long-term debt $413 $389
Accounts payable and other current
liabilities 42,063 51,472
------------- -------------
Total current liabilities 42,476 51,861
Long-term Debt, less current maturities - 313
Other Liabilities 1,462 1,689
Total Shareholders' Equity 76,003 80,730
------------- -------------
Total Liabilities and Shareholders'
Equity $119,941 $134,593
============= =============
APAC Customer Services, Inc. and Subsidiaries
Consolidated Condensed Statements of Cash Flows
(In thousands)
Thirty-Nine Weeks Ended
----------------------------
September 26, September 28,
2004 2003
------------- -------------
Operating activities:
Net income (loss) $(4,695) $3,784
Depreciation and amortization 8,127 9,153
Non-cash restructuring 279 -
Asset impairment charges 2,200 108
Deferred income taxes 758 130
Change in operating assets and
liabilities (565) 3,517
------------- -------------
Net cash provided (used) by
operating activities 6,104 16,692
Investing activities:
Purchases of property and equipment,
net (6,646) (5,571)
------------- -------------
Net cash used by investing
activities (6,646) (5,571)
Financing activities:
Payments on long-term debt (289) (488)
Repayments under revolving credit
facility - (15,500)
Stock and warrant transactions 24 46
------------- -------------
Net cash used by financing
activities (265) (15,942)
------------- -------------
Net change in cash and cash equivalents: (807) (4,821)
Beginning cash balance 11,428 14,530
------------- -------------
Ending cash balance $10,621 $9,709
============= =============
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