AnswerThink Reports Pro-Forma Third Quarter Net Revenue Growth Of 175%.MIAMI--(BUSINESS WIRE)--Oct. 21, 1998-- Highlights -- Net income for Q3 1998 totals $3.9 million versus Q3 1997 loss of $3.9 million -- Number of consultants increases by 136 during the quarter AnswerThink Consulting Group, 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 : ANSR ANSR Autonomous Naval Support Round ANSR Adaptive Network Solutions Research, Inc. ANSR Advanced Neutron Source Reactor ANSR Active No Swashplate Rotor (Army) ) ("the Company") today announced financial results for its third quarter ended October October: see month. 2, 1998. The Company reported net revenues for the third quarter of $28.0 million, which was 175% higher than pro-forma net revenues for the comparable period last year. (Pro-forma net revenues include all of the Company's acquisitions as if they had occurred at the beginning of the prior year period). Net income for the third quarter was $3.9 million, or $.11 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. Results for the quarter do not include tax expense as the Company is currently in a net-operating-loss carry-forward See Loss Carry-Back. position. Additionally, the quarterly results do not include the operating results of Infinity infinity, in mathematics, that which is not finite. A sequence of numbers, a1, a2, a3, … , is said to "approach infinity" if the numbers eventually become arbitrarily large, i.e. Consulting Group, which was acquired at the end of the quarter. In the third quarter of 1997, when the Company was still in its start-up Start-up The earliest stage of a new business venture. phase, net revenues and net loss totaled $2.7 million and $3.9 million, respectively. On a sequential quarter basis, net revenues increased 22% over the $23.0 million reported in the second quarter of 1998. Third quarter net income increased 71% to $3.9 million compared to the $2.3 million reported in the second quarter. The net consultant increase during the quarter totaled 136, of which 28 joined the Company as a result of the Infinity Consulting Group acquisition. For the nine months ended October 2, 1998, the Company reported net revenues, net loss and net loss per diluted share of $69.6 million, $33.2 million and $1.93, respectively. The loss for the nine-month period was the result of a $40.8 million one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. , non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , which resulted from the vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of performance shares issued to key executives at inception. The vesting of these shares had no impact on shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. . From April 23, 1997 (inception) to September 30, 1997, the Company reported net revenues, net loss and net loss per diluted share of $2.8 million, $8.2 million and $1.87, respectively. "During the quarter we added several new projects in excess of $3 million which are utilizing multi-disciplinary solution teams," said Ted A. Fernandez, Chairman 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. of AnswerThink. "We are beginning to see the leverage of our integrated service delivery model. Our ability to deliver "best practices" business process frameworks supported by "best-of-breed" software and enhanced using 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 or Web-based solutions is clearly differentiating us in the marketplace." AnswerThink Consulting Group (www.answerthink.com) addresses its clients' strategic business needs in the finance, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , supply chain, sales and marketing, customer support and information technology functions, by offering a wide range of integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. or solutions, including benchmarking, business process transformation, software package implementation, internet enabled electronic commerce, decision support technology, and Year 2000 solutions. The Company has offices in Atlanta, Boston, Chicago, Cleveland, Dallas, Iselin (NJ), New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Miami, Philadelphia and the Silicon Valley. Certain statements in this press release are "forward looking statements" 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 and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward looking statements. Factors that impact such forward looking statements include, among others, the ability of the Company to attract additional business, changes in expectations regarding the information technology industry, the ability of the Company to attract skilled employees, possible changes in collections of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , risks of competition, price and margin trends, changes in general economic conditions and changes in interest rates. -0-
ANSWERTHINK REPORTS THIRD QUARTER RESULTS
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Nine Months April 23, 1997
Three Months Ended Ended (inception) to
Oct. 2 Sept. 30, Oct. 2, Sept. 30,
(unaudited) 1998 1997 1998 1997
Net revenues $28,044 $2,698 $69,619 $2,760
Costs and expenses:
Project personnel and
expenses 16,607 3,730 41,635 5,346
Selling, general and
administrative 7,675 2,932 20,059 4,222
Compensation related to
vesting of restricted
shares - - 40,843 -
Settlement costs 125 1,881
Total costs and operating
expenses 24,282 6,787 102,537 11,449
Income (loss) from
operations 3,762 (4,089) (32,918) (8,689)
Other income (expense):
Interest income 243 194 374 446
Interest expense (68) - (669) -
Net income (loss) $3,937 $(3,895) $(33,213) $(8,243)
Basic net income (loss)
per common share $0.16 $(0.51) $(1.93) $(1.87)
Diluted net income (loss)
per common share $0.11 $(0.51) $(1.93) $(1.87)
Weighted average common shares
outstanding 24,106 7,626 17,240 4,413
Weighted average common
and common equivalent
shares outstanding 34,734 7,626 17,240 4,413
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CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
October 2, January 2,
1998 1998
ASSETS
Current Assets:
Cash and cash equivalents $24,417 $3,173
Short-term investments 3,150 -
Accounts receivable and
unbilled revenue, net 26,144 10,158
Prepaid expenses and other
current assets 657 413
Total current assets 54,368 13,744
Property and equipment, net 2,902 2,495
Other assets 1,808 467
Goodwill, net 23,886 11,944
Total assets $82,964 $28,650
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,546 $1,437
Accrued expenses and other
liabilities 10,768 4,127
Notes payable to shareholders,
current portion 2,239 -
Total current liabilities 15,553 5,564
Long-term liabilities 2,119 12,200
Total liabilities 17,672 17,764
Convertible preferred stock - 10,040
Shareholders' equity 65,292 846
Total liabilities and shareholders'
equity $82,964 $28,650
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