Acsys, Inc. Reports Third Quarter Earnings.ATLANTA--(BUSINESS WIRE)--Oct. 26, 1999-- Acsys, Inc. (AMEX AMEX See: American Stock Exchange :AYS AYS At Your Service AYS Are You Sure? AYS Are You Serious? AYS About Your Sexuality (Unitarian Universalist education publication) AYS All You See AYS Andover Youth Services (Andover, MA) ), a leading provider of specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. professional staffing services, today announced results for the third quarter and the nine months ended September September: see month. 30, 1999. Total historical service revenues increased 10% during the third quarter to $41.3 million from $37.6 million for the same quarter last year. Net income for the third quarter of 1999, before the impact of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and office closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, and before amortization of goodwill, was $1.5 million or $0.10 per share. Net income was $1.1 million or $0.08 per share before these one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs. Net income for the third quarter of 1999 was $810,000 or $0.06 per share. Total historical service revenues increased 40% during the first nine months of the year to $125.2 million from $89.4 million for the same period in 1998. Net income for the first nine months, before severance and office closing costs and before amortization of goodwill was $4.5 million or $0.31 per share. Net income was $3.4 million or $0.24 per share before these one-time costs. Net income for the first nine months was $1.5 million or $0.10 per share. Chief Executive Officer Timothy Timothy, epistles in the New Testament Timothy, two letters of the New Testament. With Titus they comprise the Pastoral Epistles, in which St. Paul addresses his coworkers as the guardians and transmitters of his teaching. Mann, Jr., commented, "Although we had a strong quarter in our temporary staffing business with growth of 14.5% over last year, we experienced lost time due to the impact of Hurricane Floyd This article is about the 1999 hurricane. For other storms of the same name, see Tropical Storm Floyd (disambiguation). Hurricane Floyd was the sixth named storm, fourth hurricane, and third major hurricane in the 1999 Atlantic hurricane season. . Additionally, our permanent placement business and our SAP sap, fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells. IT staffing business in the third quarter of 1999 were adversely affected by job market uncertainty, scarcity Scarcity The basic economic problem which arises from people having unlimited wants while there are and always will be limited resources. Because of scarcity, various economic decisions must be made to allocate resources efficiently. of candidates and the unfavorable impact of Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 issues. We expect these trends to continue in the fourth quarter of 1999, but we believe that more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. conditions for our staffing business will return in 2000." Additionally, Mr. Mann noted, "The one-time severance and office closing costs of $450,000 incurred in this quarter reflect a portion of the $3.3 million charges that we announced in the first quarter of this year, of which $2.8 million was taken in the first quarter." Acsys, Inc. is one of the leading specialty professional staffing firms in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Acsys, Inc. operates over 40 offices, serving metropolitan markets across the U.S. with a more significant presence in the Eastern and Midwestern Mid·west or Middle West A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and U. S. Information contained in this press release, other than historical information should be considered forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , or should underlying assumptions prove incorrect Incorrect means to not be correct and may also refer to:
relating to relate prep → bezüglich +gen, mit Bezug auf +acc Y2K, uncertainties associated with the Company's brief operating history; the Company's ability to achieve and manage growth; the Company's ability to successfully identify suitable acquisition candidates, complete acquisitions or integrate the acquired business into its operations; the Company's ability to attract and retain qualified personnel; the Company's ability to develop new services; conditions in the specialty professional staffing industry; general economic conditions; and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. -0-
ACSYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands - except per share data)
For the three months ended
September 30,
----------------------------
1999 1998
------------ -------------
SERVICE REVENUES:
Temporary staffing $ 33,807 $ 29,525
Permanent placement 7,462 8,050
--------- ---------
Total service revenues 41,269 37,575
--------- ---------
DIRECT COST OF SERVICES, consisting of
payroll, payroll taxes and benefit
costs for temporary employees 22,922 20,714
--------- ---------
Gross profit 18,347 16,861
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 14,439 12,436
AMORTIZATION AND DEPRECIATION 849 502
COMBINATION EXPENSES -- --
SEVERANCE AND OFFICE CLOSING COSTS 450 --
--------- ---------
Operating income 2,609 3,923
OTHER INCOME (EXPENSE):
Interest expense, net (1,024) (402)
Other, net -- --
--------- ---------
INCOME BEFORE INCOME TAXES 1,585 3,521
Income tax provision 775 1,500
--------- ---------
NET INCOME (LOSS) $ 810 $ 2,021
========= =========
NET INCOME (LOSS) PER SHARE (a):
Basic and diluted net income
(loss) per share $ 0.06 $ 0.14
========= =========
Pro forma (a):
Pro forma income tax expense $ 775 $ 1,500
========= =========
Pro forma net income $ 810 2,021
========= ========
Pro forma income per diluted share $ 0.06 $ 0.14
========= =========
Shares used in computing basic
net income (loss) per share 14,496 14,430
Shares used in computing diluted
net income (loss) per share 14,527 14,744
For the nine months ended
September 30,
-----------------------------
1999 1998
----------- -------------
SERVICE REVENUES:
Temporary staffing $ 101,415 $ 69,564
Permanent placement 23,741 19,807
----------- ----------
Total service revenues 125,156 89,371
---------- ----------
DIRECT COST OF SERVICES, consisting of
payroll, payroll taxes and benefit
costs for temporary employees 69,320 48,768
---------- ----------
Gross profit 55,836 40,603
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 44,996 32,969
AMORTIZATION AND DEPRECIATION 2,325 1,059
COMBINATION EXPENSES -- 1,730
SEVERANCE AND OFFICE CLOSING COSTS 3,279 650
---------- ----------
Operating income 5,236 4,195
OTHER INCOME (EXPENSE):
Interest expense, net (2,668) (466)
Other, net 256 --
---------- ----------
INCOME BEFORE INCOME TAXES 2,824 3,729
Income tax provision 1,349 5,185
========== ==========
NET INCOME (LOSS) $ 2,021 $ (1,456)
========= ==========
NET INCOME (LOSS) PER SHARE (a):
Basic and diluted net income
(loss) per share $ 0.10 $ (0.10)
========== ==========
Pro forma (a):
Pro forma income tax expense $ 1,349 $ 2,185
========== ==========
Pro forma net income $ 1,475 $ 1,544
========== ==========
Pro forma income per diluted share $ 0.10 $ 0.11
========== ==========
Shares used in computing basic
net income (loss) per share 14,478 13,878
Shares used in computing diluted
net income (loss) per share 14,506 13,878
(a) Historical net loss per share is not comparable among the periods
presented because the Company was not a taxable entity in the
beginning of 1998. Additionally, the Company recognized income
tax expense of $3.0 million in the first quarter of 1998 in
connection with the Company's conversion to a taxable entity. Pro
forma net income and pro forma income per diluted share reflect
the Company as a taxable entity in all periods presented.
Condensed Balance Sheet Data
(dollars in thousands)
September 30, 1999
-------------------------- -------------------------------------
Working capital $15,104
Total assets 88,618
Long-term debt 38,433
Shareholders' equity 35,227
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