Analysts International Reports Second Quarter Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--July 30, 2002 Analysts International Corporation (Nasdaq:ANLY) today reported results for its second quarter, ended June June: see month. 30, 2002. For the period, revenues totaled $111 million, compared to $146 million for the same quarter one year ago. The quarter produced a net loss of $3.2 million, or $(0.13) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net earnings of $373,000, or $0.02 per diluted share, for the second quarter of 2001. The most recent results include previously disclosed losses on the early extinguishments of debt and the sale of the Company's headquarters building. In April 2002, the Company completed the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its credit facility with a new lender, GE Capital, incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge of $744,000, $461,000 net of tax, or $(0.02) per share. Also in the quarter, the Company completed the sale of its corporate headquarters building, increasing its borrowing capacity under its credit facility, and producing a pretax loss pretax loss A loss reported before tax benefits are considered. of $1.86 million, or $(0.08) per share. Excluding these transactions, the Company's operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter was approximately $(0.03) per share. At June 30, 2002, the Company completed the implementation of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 142, Accounting for Goodwill and Other Intangibles. As required by this statement, a gross charge of $16.4 million, or $(0.68) per share, is reflected on the year to date income statement. Effective January January: see month. 1, 2002, the Company no longer amortizes goodwill. First half revenues of $225 million produced a loss of $20.3 million, or $(0.84) per share, including the SFAS 142 charge. This compares to $290 million in revenues and a profit of $1.1 million ($.05) for the same period in 2001. During the second quarter of 2002, direct revenues amounted to $84 million, 76% of total revenues, while sub-supplier billings processed through the company as specified in contracts with certain customers amounted to $27 million. Further, staffing accounted for 63% of the direct revenues for the quarter. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. LaVelle, President and 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. stated, "In the last quarter we implemented SFAS 142 and took significant steps to reduce debt and improve liquidity. With these issues now behind us, we can focus all of our resources on growing the business. While the soft market for IT services continued through the first half of 2002, we saw technical staff size stabilize stabilize See peg. and, for the first time in two years, appear to be trending up." "We have also continued to reduce and rationalize ra·tion·al·ize v. 1. To make rational. 2. To devise self-satisfying but false or inconsistent reasons for one's behavior, especially as an unconscious defense mechanism through which irrational acts or feelings are made to appear our cost structure," LaVelle noted, "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about opportunities to expand our services in emerging IT markets." The Company provided guidance for its third quarter ended September 30, 2002, anticipating revenues to be in the range of $105 to $110 million and expecting operating results to approach break even. Analysts will hold a conference call today at 9:30 AM (CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT ) to discuss these results. Interested parties may access 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 at www.analysts.com or may dial 888-397-6437 a few minutes before the schedule start and ask for the Analysts International Call and leader Mike LaVelle. No advance registration is required to participate. A replay of the call will be available through August 7, 2002 at 800-642-1687 and entering conference ID #4801534 and at www.analysts.com. About Analysts International Headquartered in Minneapolis, Analysts International (Nasdaq:ANLY) is a diversified diversified (di·verˑ·s IT services company. In business for more than 35 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company has sales and customer support offices 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. and Canada. Lines of business include the Sequoia sequoia (sĭkwoi`ə), name for the redwood (Sequoia sempervirens) and for the big tree, or giant sequoia (Sequoiadendron giganteum), both huge, coniferous evergreen trees of the bald cypress family, and for extinct related species. Services Group, which provides business solutions and network infrastructure services; Managed Services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality Group, which provides a comprehensive range of outsourced business functions; and IT Supplemental Resources, which provides high demand resources for supporting a client's IT staffing needs. In 2001, ComputerWorld named the Company one of the best 100 places for IT professionals to work and Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, named Analysts International its worldwide winner of the top IT Infrastructure Solution. For more information, visit the company Web site at http://www.analysts.com. Statements contained herein, which are not strictly historical fact, are 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. . Words such as "believes," "intends," "possible," "expects," "estimates," "anticipates," or "plans" and similar expressions are intended to identify forward-looking statements. Any forward-looking statements in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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 statements are based on the Company's current expectations relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future revenues, earnings, results of operations and future sales or growth. The Company's actual results may vary materially from those projected due to certain risks and uncertainties such as the general state of the economy, volume of business activity, continued need for our services by current and prospective clients, client cancellations, the Company's ability to control and improve profit margins, including our ability to control operating costs operating costs npl → gastos mpl operacionales and hourly rates for our services, the availability and utilization of qualified technical personnel and other similar factors. For more information concerning risks and uncertainties to the Company's business refer to the discussion in the "Market Condition, Business Outlook and Risks to Our Business" section in the Company's Annual Report for the year ending December 31, 2001, which is hereby incorporated by reference and the Company's prior Annual Reports, 10-Ks, 10-Qs, other Securities and Exchange Commission filings and investor relations Investor relations The process by which the corporation communicates with its investors. materials.
Analysts International Corporation
Consolidated Statements of Operations
-------------------------------------
(Unaudited)
(In thousands except Three Months Ended Six Months Ended
per share amounts) June 30 June 30
-------------------------------------
2002 2001 2002 2001
---- ---- ---- ----
Professional services revenues:
Provided directly $ 84,062 $108,343 $167,543 $218,721
Provided through sub-suppliers 26,682 37,450 57,885 71,512
-------- -------- -------- --------
Total revenues 110,744 145,793 225,428 290,233
Expenses:
Salaries, contracted services
and direct charges 92,252 120,942 187,686 239,268
Selling, administrative and
other operating costs 19,258 22,726 38,608 46,141
Amortization of goodwill and
other intangible assets 199 849 398 1,624
Loss on sale of corporate
headquarters building 1,860 -- 1,860 --
-------- -------- -------- --------
Operating (loss) income (2,825) 1,276 (3,124) 3,200
Non-operating income 22 67 66 157
Interest expense (253) (737) (911) (1,508)
-------- -------- -------- --------
(Loss) income before income
taxes, extraordinary loss on
debt extinguishment and
cumulative effect of change in
accounting principle (3,056) 606 (3,969) 1,849
Income tax (benefit) expense (340) 233 (552) 705
-------- -------- -------- --------
Net (loss) income before
extraordinary loss on debt
extinguishment and cumulative
effect of change in accounting
principle (2,716) 373 (3,417) 1,144
Extraordinary loss on debt
extinguishment (net of $283 tax
benefit) (461) -- (461) --
-------- -------- -------- --------
Net (loss) income before
cumulative change in accounting
principle (3,177) 373 (3,878) 1,144
Cumulative effect of change in
accounting for goodwill -- -- (16,389) --
-------- -------- -------- --------
Net (loss) income $ (3,177) $ 373 $ (20,267) $ 1,144
======== ======== ======== ========
Per common share:
Basic (loss) income:
(Loss) income before
extraordinary loss on
extinguishment of debt and
cumulative effect of change
in accounting principles $ (.11) $ .02 $ (.14) $ .05
Extraordinary loss on
extinguishment of debt (.02) -- (.02) --
-------- -------- -------- --------
(Loss) income before cumulative
effect of change in accounting
principle (.13) .02 (.16) .05
Cumulative effect of change in
accounting for goodwill -- -- (.68) --
-------- -------- -------- --------
Basic (loss) income: $ (.13) $ .02 $ (.84) $ .05
======== ======== ======== ========
Diluted (loss) income:
(Loss) income before
extraordinary loss on
extinguishment of debt and
cumulative effect of change
in accounting principles $ (.11) $ .02 $ (.14) $ .05
Extraordinary loss on
extinguishment of debt (.02) -- (.02) --
-------- -------- -------- --------
(Loss) income before cumulative
effect of change in accounting
principle (.13) .02 (.16) .05
Cumulative effect of change in
accounting for goodwill -- -- (.68) --
-------- -------- -------- --------
Diluted (loss) income: $ (.13) $ .02 $ (.84) $ .05
======== ======== ======== ========
Average common shares outstanding 24,197 24,195 24,197 24,195
Average common and common
equivalent shares outstanding 24,197 24,274 24,197 24,282
Analysts International Corporation
Consolidated Balance Sheets
---------------------------
(In thousands)
June 30, Dec. 31,
2002 2001
--------- ---------
(Unaudited)
Assets
------
Current assets:
Cash and cash equivalents $ 268 $ 18,204
Accounts receivable, less
allowance for doubtful
accounts 71,950 83,322
Other current assets 7,676 9,309
--------- ---------
Total current assets 79,894 110,835
Property and equipment, net 8,951 28,406
Other assets 34,201 53,643
--------- ---------
$123,046 $192,884
========= =========
Liabilities and Shareholders' Equity
-------------------------------------
Current liabilities:
Accounts payable $ 25,984 $ 37,778
Long-term debt, current portion 9,488 41,000
Salaries and vacations 7,319 6,399
Self-insured health care reserves and
other amounts 3,981 7,882
Restructuring accruals - current portion 673 1,154
--------- ---------
Total current liabilities 47,445 94,213
Other long-term liabilities 4,785 7,588
Shareholders' equity 70,816 91,083
--------- ---------
$123,046 $192,884
========= =========
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