Answerthink Announces Fourth Quarter and 2001 Results.Business Editors/Technology Writers MIAMI--(BUSINESS WIRE)--Feb. 7, 2002 Q4 Pro-forma 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. in Line With Consensus Estimates; Joint Venture with HCL Technologies HCL Technologies is India’s 5th largest [2] and a leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Expands Answerthink's Business Model; EPIC Acquisition Extends Hackett Benchmarking Offering 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) ), a leading provider of technology-enabled business transformation solutions, today announced financial results for its fourth quarter and fiscal year ended December 28, 2001. Net revenues for the fourth quarter of 2001 were $50.2 million, compared to $69.0 million reported for the fourth quarter of 2000. 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 income (income before amortization of intangibles, non-cash compensation and non-recurring items) for the fourth quarter of 2001 was $852,000, or $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 $715,000, or $0.02 per diluted share, in the fourth quarter of 2000. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share results for the fourth quarter of 2001 were in line with consensus estimates. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, the net loss for the fourth quarter of 2001 was $6.2 million, or $0.14 per share, compared to a net loss of $11.0 million, or $0.26 per share in the fourth quarter of 2000. The fourth quarter of 2001 included a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $8.5 million for costs associated with personnel and facility reductions. The Company's cash balance increased by $6.4 million during the quarter to $59.9 million at December 28, 2001. Net revenues for the year 2001 were $247.5 million, compared to $311.1 million in 2000. Pro forma net income for the year 2001 was $7.0 million, or $0.15 per diluted share, compared to $22.4 million, or $0.50 per diluted share, in 2000. On a GAAP basis, the net loss for the year 2001 was $8.5 million, or $0.19 per share, compared to net income reported in 2000 of $7.9 million, or $0.18 per diluted share. "Our ability to meet our quarterly earnings expectations throughout a very difficult year are a strong testament to the leverage of our business model, the discipline in our operating philosophy and the outstanding commitment of our associates," stated 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 continued to operate with positive cash flow during the quarter despite the challenging market conditions." "We are strategically expanding our business model so we are positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. growth opportunities as economic conditions improve," Fernandez continued. "Our new venture with HCL Technologies and our acquisition of EPIC are good examples of this expansion. With HCL HCl hydrochloric acid. we will provide cost-effective application development, maintenance and support to Fortune 1000 clients. The addition of EPIC will enhance our Hackett Benchmarking offerings and intellectual capital around proven and emerging best practices. More companies are evaluating business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in as a strategy to reduce operating costs operating costs npl → gastos mpl operacionales and enable increased focus on their core business objectives. We believe that our benchmarking offering provides us with unique capabilities to partner in this arena." Recent Highlights Service Expansion: Announced today the formation of a joint venture with HCL Technologies, a leading global IT services company, to provide Fortune 1000 companies with cost-competitive offshore development services, including custom application and system development services, on-going application support and application reporting services. Also announced today was the acquisition of Exult Process Intelligence Center (EPIC) from Exult, Inc. to expand Hackett Benchmarking services to include subscription offering and best practices studies addressing Global 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. , Accounts Payable, Travel and Expense, Payroll and General Ledger General Ledger A company's accounting records. This formal ledger contains all the financial accounts and statements of a business. Notes: The ledger uses two columns: one records debits, the other has offsetting credits. . Key client engagements: Global electronics and telecommunications company See telecom company. - to design and develop an accounts payable shared services center Shared Services Center is the entity responsible for the execution and the handling of specific operational tasks Accounting, human resources, payroll, IT, legal, compliance, purchasing, security. using Oracle applications, which provide savings through the consolidation of disparate accounts payable systems and improve the timing, accuracy and distribution of information. Leading provider of communications services - to roll out an Answerthink developed Web-enabled application to provide real-time access to the company's cost model information. The application will enable the company to make more effective strategic and analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. pricing decisions. Answerthink will also provide data and analytic enhancements to its recently implemented financial application to help the company close its books more efficiently. Large electric utilities company - to implement a PeopleSoft driven financial and management reporting system, incorporating best practices processes, to streamline financial information from various legacy systems. Answerthink will also implement a new data warehouse environment for financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against and analysis that will be the foundation for the company's enterprise data warehousing See data warehouse. data warehousing - data warehouse operations. Insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. provider - to 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 the company's external Web site and implement a content management system to showcase the breadth and depth of their service offerings and to help drive customers and potential customers to the company's business units. Answerthink was selected as the company's strategic, long-term interactive partner to oversee the ongoing online needs of the company and its subsidiaries. Global financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company - to develop a new technical architecture for the company's external Web site to help improve scalability and efficiency and to keep pace with the company's expanding business via the Web. Multi-billion dollar diversified diversified (di·verˑ·s automotive company - to design and develop a new pricing system Noun 1. pricing system - a system for setting prices on goods or services system - a procedure or process for obtaining an objective; "they had to devise a system that did not depend on cooperation" that will help provide greater value and flexibility to the company's long-term, strategic plans. Answerthink will also benchmark the company's Finance function, redesign its Finance processes and implement Lawson technology to help enable the Finance organization provide more strategic value to the company and become better aligned with the Company's business goals. Global electronics company - to complete a global benchmark for the company's selling, general and administrative (SG&A) functions. The SG&A benchmark will enable the company to identify and target savings, as well as improve overall enterprise efficiency, specifically in the organizational, infrastructure and process components of the business. Retail Research: Announced results of third annual Holiday Web Shopping study. The study for this past holiday season indicated that online shopping is finally on par with the brick and mortar See bricks and mortar. shopping experience and that online shoppers benefited from significant improvement in content, such as product descriptions, advanced searches, gift finders and gift recommendations. Answerthink also recognized excellence in Web customer care with its "Top Shop Awards" to Eddie Bauer Eddie Bauer (NASDAQ: EBHI) is a clothing store chain. Headquartered in Bellevue, Washington, and a subsidiary of Eddie Bauer Holdings (formerly Spiegel, Inc.), the company was founded in Seattle in 1920 as "Eddie Bauer's Sport Shop" by its namesake, Eddie Bauer (1899 – , Coldwater Creek Coldwater Creek is a clothing retailer which is based in Sandpoint, Idaho, United States. The company was founded in 1984 by Dennis Pence. The company had 239 stores in operation at the end of the 2006 fiscal year.[1] Notes 1. ^ Coldwater Creek. , eToys (part of KB Holdings, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ) and GapKids. Industry recognition: Received seven Web Marketing Association's 2001 Web Awards, including one "Outstanding Web Site," one "Best Automobile Web Site" and five "Standard of Excellence" awards. Won a 2001 International EMMA award Emma award can refer to:
Newyorklife.com, developed by Answerthink, was designated a winning Web site for the fourth consecutive year in the Apex Thirteenth Annual Awards for Excellence, and also won the "Best of Show" award at the Life Communicators Association (LCA LCA Life Cycle Assessment LCA Saint Lucia (ISO Country code) LCA Life Cycle Analysis LCA Linux.conf.au (Australian Linux conference) LCA Labor Condition Application LCA Light Combat Aircraft ) annual competition. Answerthink will host a conference call for investors today at 5:00PM EST EST electroshock therapy. EST abbr. electroshock therapy to further discuss the earnings results for the fourth quarter and future outlook. To participate in the conference call, please dial 1-888-847-6588 approximately 10 minutes before the call. International callers may dial 1-712-257-2272. The passcode for the call is "fourth quarter" and the conference leader is Ted A. Fernandez. The call will also be webcast at http://www.answerthink.com and http://www.streetevents.com. A replay of this call will be available through Thursday, February 14th at 5:00PM EST by dialing 1-800-753-0366. About Answerthink: Answerthink, Inc. (http://www.answerthink.com) is a leading provider of technology-enabled business transformation solutions. The Company brings together multi-disciplinary expertise in benchmarking, business transformation, interactive direct marketing, business applications and technology integration to serve the needs of Global 2000 clients. Answerthink's solutions span all functional areas of a company including 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, sales, marketing, customer service, and supply chain, as well as across a variety of industry sectors. Founded in 1997, Answerthink has more than 1,100 associates and offices in 14 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. 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 the ability of the Company to attract additional business, the timing of projects and the potential for project cancellations Project cancellation hits around half of U.S. software development projects, whether developed for in-house corporate use or for sale as retail software. When a project is cancelled early on, it has little financial impact but if project sponsors wait until the project has gone by our customers, changes in expectations regarding the information technology industry, the ability of the Company 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 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 Year Ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2001 2000 2001 2000
(unaudited)
Net revenues $ 50,154 $ 69,046 $ 247,461 $ 311,136
Costs and expenses:
Project personnel
and expenses 32,146 42,972 155,150 182,191
Selling, general and
administrative expenses 18,581 37,475 88,704 110,180
Restructuring costs 8,489 3,700 8,489 3,700
Stock compensation
expense (1) -- 213 4,855 853
------- ------- ------- -------
Total costs and
operating expenses 59,216 84,360 257,198 296,924
------- ------- ------- -------
Income (loss) from operations (9,062) (15,314) (9,737) 14,212
Other income (expense):
Litigation settlement -- -- -- 1,850
Non-cash investment losses -- (2,350) -- (2,350)
Interest income 237 451 1,222 1,383
Interest expense (39) (39) (165) (255)
------- ------- ------- -------
Income (loss) before
income taxes (8,864) (17,252) (8,680) 14,840
Income taxes (2,675) (6,219) (161) 6,939
------- ------- ------- -------
Net income (loss) $(6,189) $(11,033) $(8,519) $ 7,901
======= ======= ======= =======
Basic net income (loss)
per common share $ (0.14) $ (0.26) $ (0.19) $ 0.20
Weighted average common
shares outstanding 45,103 42,479 43,999 40,262
Diluted net income
(loss) per common share $ (0.14) $ (0.26) $ (0.19) $ 0.18
Weighted average common
and common equivalent
shares outstanding 45,103 42,479 43,999 45,137
Pro Forma Data: (2)
Income (loss) before
income taxes $(8,864) $(17,252) $(8,680) $ 14,840
Non-cash and non-recurring
expenses 10,273 18,415 20,275 23,507
Litigation settlement -- -- -- (1,850)
------- ------- ------- -------
Pro forma income
before income taxes 1,409 1,163 11,595 36,497
Pro forma income
tax expense 557 448 4,580 14,051
------- ------- ------- -------
Pro forma net income $ 852 $ 715 $ 7,015 $22,446
======= ======= ======= =======
Pro forma basic net
income per common share $ 0.02 $ 0.02 $ 0.16 $ 0.56
Pro forma diluted net
income per common share $ 0.02 $ 0.02 $ 0.15 $ 0.50
Weighted average common
shares outstanding 45,103 42,479 43,999 40,262
Weighted average common
and common equivalent
shares outstanding 46,245 45,994 46,304 45,137
(1) In 2001, the Company granted stock options to participants in
the Company's Employee Stock Purchase Plan. These stock options were
granted in lieu of the Employee Stock Purchase Plan shares that could
not be issued because the plan was oversubscribed. The Company
recorded a non-cash stock compensation charge ($0 for the quarter and
$4,218 for the year 2001) for the difference between the fair market
value of the stock on the option grant date and the exercise price.
(2) Pro forma data excludes non-recurring charges representing
restructuring costs associated with personnel and facility reductions
($8,489 in 2001 and $3,700 in 2000 for the quarter and for the year),
reserves for dot-com related receivables ($0 in 2001 and $10,500 in
2000 for the quarter and for the year) and non-cash investment losses
($0 in 2001 and $2,350 in 2000 for the quarter and for the year),
amortization of intangibles ($1,784 in 2001 and $1,652 in 2000 for the
quarter and $6,931 in 2001 and $6,104 in 2000 for the year), non-cash
compensation expense ($0 in 2001 and $213 in 2000 for the quarter and
$4,855 in 2001 and $853 in 2000 for the year) and litigation
settlement ($0 in 2001 and 2000 for the quarter and $0 in 2001 and
$1,850 in 2000 for the year). Pro forma data does not purport to be
prepared in accordance with Generally Accepted Accounting Principles.
Answerthink, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 28, Dec. 29,
2001 2000
ASSETS
Current assets:
Cash and cash equivalents $ 59,888 $ 51,662
Accounts receivable and unbilled revenue, net 39,164 59,706
Other receivables 851 3,547
Prepaid expenses and other current assets 14,201 15,044
------- -------
Total current assets 114,104 129,959
Property and equipment, net 18,468 14,655
Other assets 1,427 1,450
Goodwill, net 77,920 82,612
------- -------
Total assets $211,919 $228,676
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,187 $ 10,006
Accrued expenses and other liabilities 27,992 39,270
Media payable 1,039 7,346
------- -------
Total current liabilities 34,218 56,622
Shareholders' equity 177,701 172,054
------- -------
Total liabilities and
shareholders' equity $211,919 $228,676
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