Answerthink Announces First Quarter Results; Results in Line with Previously Provided Guidance.Business Editors/High-Tech Writers MIAMI--(BUSINESS WIRE)--April 29, 2003 Answerthink, Inc. (Nasdaq:ANSR ANSR Autonomous Naval Support Round ANSR Adaptive Network Solutions Research, Inc. ANSR Advanced Neutron Source Reactor ANSR Active No Swashplate Rotor (Army) ) announced today its financial results for the first quarter of 2003 which ended April 4, 2003. Revenues for the first quarter of 2003 were $36.8 million, compared to $49.7 million in the comparable period of 2002. The decrease in revenues compared to the prior year was primarily due to the completion of a major project at one of the Company's largest clients. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, the Company's net loss for the first quarter of 2003 was $0.02 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 a net loss of $0.70 per diluted share, for the comparable period of 2002. The 2002 results included a charge of $0.68 per diluted share for the cumulative effect of a change in accounting for goodwill and a loss of $0.03 per diluted share for loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . The Company's pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss for the first quarter of 2003 was $0.01 per diluted share, compared to a net loss of $0.00 per diluted share, in the first quarter of 2002. Pro forma information is a non-GAAP financial measure that is described and reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to the Company's GAAP information in the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. tables. The Company's cash balances, including restricted cash, were $61.0 million at the end of the first quarter of 2003. The Company also reported that it used approximately $1.7 million in cash during the first quarter of 2003 to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. approximately 713,000 shares of common stock under the previously announced share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. The Company has approximately $1.1 million available for future share repurchases under the share repurchase program. "We are pleased with our results given the challenging economic environment and the investments we continue to make in our Hackett Hackett may refer to: In places:
1. to distinguish, on the basis of differences. 2. to develop specialized form, character, or function differing from that surrounding it or from the original. our services and allow us to help our clients significantly improve operational efficiency and their focus on strategic priorities. Our results could not be accomplished without people continuing to focus on outstanding client service and also contributing to our cost-management efforts." Based on the current economic outlook, the Company estimates total revenues for the second quarter of 2003 to be in the range of $31.0 million to $33.5 million. The Company also expects GAAP results to be in the range of a net loss of $0.02 per diluted share to net income of $0.02 per diluted share and pro forma results to be in the range of a net loss of $0.01 per diluted share to net income of $0.01 per diluted share for the second quarter of 2003. First Quarter Highlights Service Expansion Hackett Best Practices Certification Program - The Hackett Group announced a new Best Practices Certified See certification. Solution program for business software and services. The Hackett Certified Solution program evaluates software and related service offerings and determines whether they support proven Hackett best practices in 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. , information technology (IT), shared services shared services, n.pl the administrative, clinical, or other service functions that are common to two or more hospitals or their health care facilities and used jointly or cooperatively by them. , procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , and related areas. Simultaneously, Hackett announced that it has awarded its first best practices certification to PeopleSoft (PeopleSoft, Inc., Pleasanton, CA, www.peoplesoft.com) A software company that specialized in enterprise-wide applications for client/server environments. Initially specializing in human resources, its package offerings covered the gamut including financial, distribution, manufacturing for the Financial Management Solutions applications of PeopleSoft Version 8.4. Hackett 2003 World-Class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. Finance Research - Hackett announced the release of its "2003 Profile of World-Class Finance" research report, which showed that most companies continue to have opportunities for improvement by better leveraging best practices in their financial operations. Hackett Business Value Index Finance Benchmark Launch - Hackett announced the introduction of a new Business Value Index (BVI) finance benchmark and performance scorecard. The finance BVI and scorecard are streamlined measurement tools that offer companies an ongoing assessment of the true business value provided by their finance organization. These tools are designed to help companies identify and prioritize pri·or·i·tize v. pri·or·i·tized, pri·or·i·tiz·ing, pri·or·i·tiz·es Usage Problem v.tr. To arrange or deal with in order of importance. v.intr. strategies to increase efficiency, enhance strategic effectiveness, and improve risk management and return on finance-related expenditures. Savvion Partnership Announcement - Answerthink announced a partnership with Business Process Management (BPM (Business Process Management) A structured approach that models an enterprise's human and machine tasks and the interactions between them as processes. BPM software provides users with a dashboard interface that offers a high-level view of the operation that typically ) software vendor Savvion, Inc. Under the partnership, the two companies will engage in joint sales, marketing, and development activities. Representative New Client Engagements Currency Automation Systems Manufacturer - The implementation of a worldwide service management system based on Oracle CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. 11i and leveraging Answerthink's Business Process Intelligence. The new system, which will be deployed in the U.S. and Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). during 2003, will provide the organization with a single consolidated service management system. Global Insurance Company - A PeopleSoft CRM implementation to support the creation of a consolidated IT services desk for the company's North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. . The work is part of a larger IT transformation effort and will employ best practices in shared services and other areas. Electrical Utility - An extension to a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. project. The extension focuses on assisting with the transition of companies acquired through mergers and acquisitions to an integrated corporate system based on PeopleSoft Financials and Enterprise Performance Management. Answerthink designed the original system utilizing best practices to specifically facilitate the rapid incorporation of newly acquired companies. National Specialty Store Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" Retailer - The implementation of Retek software solutions to enhance merchandise management and decision support. Answerthink will utilize its extensive retail supply chain best practices knowledge base as part of this implementation. County Government - Migration of the county's existing systems to Lawson The name Lawson can refer to a number of different things: People
"We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." spreadsheets The following is a list of spreadsheets. Freeware/open source software Online spreadsheets
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 . Information Services See Information Systems. Company - Implementation services, project management, and change management that will enable the company to improve the efficiency of its commission payments calculations, utilizing solutions from Callidus Software. The project will create a single integrated system that will enable managers and others to do comprehensive compensation modeling, including analysis of factors such as base pay, commissions calculated using diverse rules, merit increases, and cash versus options decisions. International Publisher - A global finance cost optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. and process improvement project. The engagement will begin with a Hackett finance benchmark, and include a comprehensive redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re of the company's financial organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. , development of streamlined processes for local and corporate planning, and optimization of shared services organizations in the U.S. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .
Industry Recognition Gartner (Gartner, Inc., Stamford, CT, www.gartner.com) The largest information technology consulting firm that specializes in research and analysis. Founded in 1979 by Gideon Gartner, it has grown through acquisitions, including Dataquest in 1995 and Techrepublic in 2000. Dataquest (Dataquest Inc., San Jose, CA, www.dataquest.com) A major market research and analysis firm in the information field. Dataquest offers market intelligence on more than 25 topics and provides conferences, annual subscriptions and custom research. Report on Business Process Intelligence Approach - On January January: see month. 24, Gartner, Inc. issued "Answerthink Delivers Metrics-Based Process Improvements," a Gartner Dataquest Research Brief by Principal Analyst Ted Kempf and Senior Analyst Alex (language) Alex - 1. A polymorphic language being developed by Stephen Crawley <sxc@itd.dtso.oz.au> of Defence Science & Tech Org, Australia. Alex has abstract data types, type inference and inheritance. 2. Investor Call Information Answerthink will host a conference call for investors today at 5:00 P.M. ET to further discuss the earnings results for the first quarter and future outlook. To participate in the conference call, please dial 1 (888) 577-8990 approximately 5-10 minutes before the call. International callers may dial 1 (630) 395-0027. The passcode for the call is "First Quarter" and the conference leader is Ted A. Fernandez. In addition, Answerthink will also be Web casting this conference call live through the StreetEvents.com service. To participate, simply visit http://www.answerthink.com approximately 10 minutes prior to the start of the call and click on the conference call link provided. If you are unable to participate on the conference call, a rebroadcast will be available beginning at 8:00 P.M. ET on Tuesday Tuesday: see week. , April 29, 2003 and will run through 5:00 P.M. ET on Tuesday, May 6, 2003. To access the rebroadcast, please dial 1 (800) 839-2281. International callers may dial 1 (402) 998-1188. An online replay of the call will also be available after 8:00 P.M. ET on Tuesday, April 29, 2003 and will run through 5:00 P.M. ET on Tuesday, May 6, 2003. To access the call, visit http://www.answerthink.com or http://www.streetevents.com. About Answerthink Answerthink, Inc. (http://www.answerthink.com) is a leading business and technology consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a that enables companies to achieve world-class business performance. By leveraging the comprehensive database of The Hackett Group, the world's leading repository (1) A database of information about applications software that includes author, data elements, inputs, processes, outputs and interrelationships. A repository is used in a CASE or application development system in order to identify objects and business rules for reuse. of enterprise best practice metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. and business process knowledge, Answerthink's business and technology solutions help clients significantly improve performance and maximize returns on technology investments. Answerthink's capabilities include benchmarking
Benchmarking (also "best practice benchmarking" or "process benchmarking") is a process used in management and particularly strategic , business transformation, business applications, technology integration, and offshore application maintenance and support. Founded in 1997, Answerthink has offices in 9 cities throughout 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 in Europe. This press release contains "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, our ability to attract additional business, the timing of projects and the potential for contract cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. by our customers, changes in expectations regarding the information technology industry, our ability to attract and retain 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 interest rates, the risk that the Internal Revenue Service or the courts may not accept the amount or nature of one or more items of deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. , loss, income or gain as reported by Answerthink for tax purposes and the possible outcome of pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and our actions in connection with such litigation as well as other risks detailed in the Company's reports filed with the Securities and Exchange Commission.
Answerthink, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Quarter Ended
---------------------
April 4, March 29,
2003 2002
----------- ---------
(unaudited)
Revenues:
Revenues before reimbursements $ 32,856 $ 43,445
Reimbursements 3,929 6,243
-------- --------
Total revenues 36,785 49,688
Costs and expenses:
Project personnel and expenses:
Project personnel and expenses before
reimbursable expenses 21,562 29,226
Reimbursable expenses 3,929 6,243
-------- --------
Total project personnel and expenses 25,491 35,469
Selling, general and administrative expenses 12,540 14,411
-------- --------
Total costs and operating expenses 38,031 49,880
-------- --------
Loss from operations (1,246) (192)
Other income (expense):
Interest income 224 156
Interest expense - (46)
-------- --------
Loss before income taxes, loss from
discontinued operations and cumulative
effect of change in accounting principle (1,022) (82)
Income taxes - (616)
-------- --------
Income (loss) from continuing operations (1,022) 534
Loss from discontinued operations - (1,457)
-------- --------
Loss before cumulative effect of change in
accounting principle (1,022) (923)
Cumulative effect of change in accounting
principle (1) - (31,200)
-------- --------
Net loss $ (1,022) $(32,123)
-------- --------
Basic net income (loss) per common share:
Income (loss) from continuing operations $ (0.02) $ 0.01
Loss from discontinued operations $ - $ (0.03)
Cumulative effect of change in accounting
principle $ - $ (0.68)
Net loss per common share $ (0.02) $ (0.70)
Weighted average common shares outstanding 46,296 45,868
Diluted net income (loss) per common share: (2)
Income (loss) from continuing operations $ (0.02) $ 0.01
Loss from discontinued operations $ - $ (0.03)
Cumulative effect of change in accounting
principle $ - $ (0.66)
Net loss per common share $ (0.02) $ (0.68)
Weighted average common and common
equivalent shares outstanding 46,296 47,211
Pro forma data: (3)
Loss before income taxes, loss from
discontinued operations and cumulative
effect of change in accounting principle $ (1,022) $ (82)
Amortization of intangible assets 98 44
-------- --------
Pro forma loss before income taxes (924) (38)
Pro forma income taxes (370) (15)
-------- --------
Pro forma loss $ (554) $ (23)
-------- --------
Pro forma basic net loss per common share $ (0.01) $ -
Weighted average common shares outstanding 46,296 45,868
Pro forma diluted net loss per common share $ (0.01) $ -
Weighted average common and common
equivalent shares outstanding 46,296 47,211
(1) The Company adopted Statement of Financial Accounting Standards
No. 142, "Goodwill and Other Intangible Assets", during the
first quarter of 2002. This accounting rule eliminated the
amortization of goodwill and changed the method of determining
whether there is a goodwill impairment from an undiscounted cash
flow method to a fair value method. As a result of the adoption
of this standard, the Company incurred a non-cash transitional
charge of $31.2 million in the first quarter of 2002 due to the
cumulative effect of the change in accounting principle.
(2) Potentially dilutive shares were excluded from the diluted loss
per share calculation for the quarter ended April 4, 2003 as
their effects would have been anti-dilutive to the loss incurred
by the Company. The total number of weighted average common and
common equivalent shares outstanding, including any anti-
dilutive shares, for the quarter ended April 4, 2003 were 46,615
shares.
(3) The Company provides pro forma earnings results (which exclude
amortization and impairment of intangible assets, non-cash
compensation, change in accounting principles, loss from
discontinued operations and restructuring charges, and include a
normalized tax rate) as a complement to results provided in
accordance with Generally Accepted Accounting Principles. To
supplement its consolidated financial statements presented in
accordance with GAAP, Answerthink uses non-GAAP measures of pro
forma results of operations. These non-GAAP results are provided
to enhance the users's overall understanding of the Company's
current financial performance and its prospects for the future.
The Company believes the non-GAAP results provide useful
information to both management and investors by excluding
certain expenses that it believes are not indicative of its core
operating results. The non-GAAP measures are included to provide
investors and management with an alternative method for
assessing operating results in a manner that is focused on
the performance of ongoing operations and to provide a more
consistent basis for comparison between quarters. Further, these
non-GAAP results are one of the primary indicators management
uses for planning and forecasting in future periods. In
addition, since the Company has historically reported non-GAAP
results to the investment community, it believes the inclusion
of non-GAAP numbers provides consistency in its financial
reporting. The presentation of this additional information
should not be considered in isolation or as a substitute for
results prepared in accordance with accounting principles
generally accepted in the United States of America.
Answerthink, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
April 4, Jan. 3,
2003 2003
------------------------------------------------------------ ---------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 58,040 $ 63,419
Restricted cash 2,914 2,909
Accounts receivable and unbilled revenue,
net 22,852 24,159
Prepaid expenses and other current assets 12,891 14,678
-------- --------
Total current assets 96,697 105,165
Property and equipment, net 10,936 11,790
Other assets 1,675 1,686
Goodwill, net 26,720 26,720
-------- --------
Total assets $136,028 $145,361
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,162 $ 5,684
Accrued expenses and other liabilities 21,472 26,630
-------- --------
Total current liabilities 25,634 32,314
Shareholders' equity 110,394 113,047
-------- --------
Total liabilities and shareholders'
equity $136,028 $145,361
-------- --------
Answerthink, Inc.
Supplemental Financial Data
(unaudited)
2003 2002
-------- -----------------
1Q 4Q 1Q
-------- -------- --------
Revenue Breakdown by Group:
(in thousands)
Business Applications $20,055 $23,571 $30,046
Technology Integration 8,851 9,049 11,296
Business Transformation 5,270 5,235 6,565
The Hackett Group 2,609 1,522 1,781
-------- -------- --------
Total revenues $36,785 $39,377 $49,688
======== ======== ========
Revenue Concentration:
(% of total revenues)
Top customer 10% 12% 30%
Top 5 customers 38% 43% 52%
Top 10 customers 51% 56% 62%
Key Metrics and Other Financial Data:
Consultant utilization rate 68% 60% 58%
Gross billing rate per hour $184 $182 $194
Net billing rate per hour $164 $162 $170
Consultant headcount 540 620 806
Total headcount 678 753 964
Days sales outstanding (DSO) 57 60 59
Cash provided by (used in) operations
(in thousands) $(3,436) $6,416 $19
Depreciation and amortization $1,226 $1,304 $1,342
Share Repurchase Program:
Shares purchased since inception (in
thousands) 1,859 1,146 n/a
Cost of shares repurchased (in
thousands) $3,872 $2,208 n/a
Average per share cost of shares
purchased since inception $2.08 $1.93 n/a
Remaining authorization (in
thousands) $1,128 $2,792 n/a
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