Analysts International Reports Third Quarter Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Oct. 29, 2002 Company Announces Second Consecutive Quarterly Increase in Direct Revenues and the Elimination of Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 80 Positions as Overhead Reductions and Cost Controls Continue Analysts International Corporation (Nasdaq:ANLY) today reported results for its third quarter, ended September September: see month. 30, 2002. For the period, revenues totaled $107.4 million, compared to $137.0 million for the same quarter one year ago. The quarter produced a net loss of $683,000, or $(.03) 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 income of $32,000 (essentially break-even from an EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. perspective) for the third quarter of 2001. During the third quarter of 2002, direct revenues amounted to $85.2 million, 79.4% of total revenues. Sub-supplier billings processed through the company as specified in contracts with certain customers amounted to $22.2 million. Company President and Chief Executive Officer, 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, commented, "We see a number of positive signs in the results of the most recent quarter. Direct revenues have increased for the second consecutive quarter, driven in large part by gains in our infrastructure business, which increased to $14.6 million in the quarter, up 12.4% from the level reported last quarter. We are pleased that in this period of decreased demand throughout the industry, our direct revenues from staffing and solutions have not only held, but have grown. In addition, reflecting our ongoing initiatives to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. revenue sources, 50% of this quarter's total revenues came from solutions and 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 and 50% from staffing." Company officials noted that during the most recent quarter, several large projects that had assisted the Company in staff retention and had provided coverage for overhead costs overhead costs see fixed costs. were completed. As a result of that and the commitment to continue to lower overhead and contain costs, some 80 administrative and management positions were eliminated. "We continue to be diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d about right-sizing the Company for today's market environment," LaVelle noted. "We expect to see some benefit from these actions in the fourth quarter but would anticipate the full benefit to become evident in the first quarter of 2003." For the nine months ended September 30, 2002, revenues of $332.8 million produced a loss of $20.9 million, or $(.87) per share, including the charge to write off goodwill upon the adoption 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. This compares to $427.2 million in revenues and a profit of $1.2 million ($.05 per diluted share) for the same period in 2001. The Company provided guidance for its fourth quarter ended December December: see month. 31, 2002, anticipating that revenues will approach $100 million and result in a loss of $.02 per share. 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 scheduled 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 November November: see month. 5, 2002 at 800-642-1687 and entering conference ID #5932090 and at www.analysts.com. About Analysts International Headquartered in Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. , 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 Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . 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 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 utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be 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 Nine Months Ended
per share amounts) September 30 September 30
------------------ -------------------
2002 2001 2002 2001
-------- --------- --------- ---------
Professional services revenues:
Provided directly $85,245 $100,479 $252,788 $319,200
Provided through sub-
suppliers 22,169 36,517 80,054 108,029
-------- --------- --------- ---------
Total revenues 107,414 136,996 332,842 427,229
Expenses:
Salaries, contracted services
and direct charges 88,715 113,732 276,401 353,000
Selling, administrative and
other operating costs 19,380 21,700 57,988 67,841
Amortization of goodwill and
other intangible assets 193 803 591 2,427
Loss on sale of corporate
headquarters building -- -- 1,860 --
-------- --------- --------- ---------
Operating (loss) income (874) 761 (3,998) 3,961
Non-operating income 53 40 119 197
Interest expense (86) (749) (997) (2,257)
-------- --------- --------- ---------
(Loss) income before income
taxes, extraordinary loss on
debt extinguishment and
cumulative effect of change in
accounting principle (907) 52 (4,876) 1,901
Income tax (benefit) expense (224) 20 (776) 725
-------- --------- --------- ---------
Net (loss) income before
extraordinary loss on debt
extinguishment and cumulative
effect of change in accounting
principle (683) 32 (4,100) 1,176
Extraordinary loss on debt
extinguishment (net of $283 tax
benefit) -- -- (461) --
-------- --------- --------- ---------
Net (loss) income before
cumulative change in accounting
principle (683) 32 (4,561) 1,176
Cumulative effect of change in
accounting for goodwill -- -- (16,389) --
-------- --------- --------- ---------
Net (loss) income $(683) $32 $(20,950) $1,176
======== ========= ========= =========
Per common share:
Basic (loss) income:
(Loss) income before
extraordinary loss on
extinguishment of debt and
cumulative effect of change in
accounting principle $ (.03) $ .00 $ (.17) $ .05
Extraordinary loss on
extinguishment of debt -- -- (.02) --
-------- --------- --------- ---------
(Loss) income before cumulative
effect of change in accounting
principle (.03) .00 (.19) .05
Cumulative effect of change in
accounting for goodwill -- -- (.68) --
-------- --------- --------- ---------
Basic (loss) income: $(.03) $.00 $(.87) $.05
======== ========= ========= =========
Diluted (loss) income:
(Loss) income before
extraordinary loss on
extinguishment of debt and
cumulative effect of change in
accounting principle $ (.03) $ .00 $ (.17) $ .05
Extraordinary loss on
extinguishment of debt -- -- (.02) --
-------- --------- --------- ---------
(Loss) income before cumulative
effect of change in accounting
principle (.03) .00 (.19) .05
Cumulative effect of change in
accounting for goodwill -- -- (.68) --
-------- --------- --------- ---------
Diluted (loss) income: $(.03) $.00 $(.87) $.05
======== ========= ========= =========
Average common shares
outstanding 24,198 24,196 24,197 24,195
Average common and common
equivalent shares outstanding 24,198 24,280 24,197 24,296
Analysts International Corporation
Consolidated Balance Sheets
---------------------------
(In thousands) September 30, 2002 Dec. 31, 2001
------------------- ---------------
(Unaudited)
Assets
------
Current assets:
Cash and cash equivalents $1,744 $18,204
Accounts receivable, less
allowance for doubtful
accounts 67,672 83,322
Other current assets 8,202 9,309
------------------- ---------------
Total current assets 77,618 110,835
Property and equipment, net 8,266 28,406
Other assets 33,038 53,643
------------------- ---------------
$118,922 $192,884
=================== ===============
Liabilities and Shareholders' Equity
-------------------------------------
Current liabilities:
Accounts payable $19,178 $37,778
Long-term debt, current portion 5,608 41,000
Salaries and vacations 11,499 6,399
Self-insured health care reserves
and other amounts 7,150 7,882
Restructuring accruals - current
portion 636 1,154
------------------- ---------------
Total current liabilities 44,071 94,213
Other long-term liabilities 4,719 7,588
Shareholders' equity 70,132 91,083
------------------- ---------------
$118,922 $192,884
=================== ===============
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