BRANDON SYSTEMS ANNOUNCES SECOND QUARTER RESULTS.LYNDHURST Lyndhurst, city (1990 pop. 15,982), Cuyahoga co., NE Ohio; inc. 1917. It is a residential suburb of Cleveland. , N.J.--(BUSINESS WIRE)--May 6, 1996--Brandon Systems Corporation (AMEX AMEX See: American Stock Exchange :BRA) today announced results for the second quarter ended March 31, 1996. Revenues for the second quarter ended March 31, 1996 were a record $22,311,000 as compared with $20,135,000 for the second quarter ended April 2, 1995. Excluding the merger expenses of $417,000, or $0.06 per share, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the merger agreement with Interim Services Inc., net income for the quarter was $1,500,000, or $0.33 per share compared to $1,451,000, or $0.32 per share for the second quarter of fiscal 1995. Including the merger expenses, net income for the three month period was $1,244,000, or $0.27 per share. Revenues for the first six months of fiscal 1996 were $44,151,000, as compared with $39,259,000 for the first six months of 1995. Excluding the merger expenses, net income for the first half of 1996 was $3,171,000, or $0.70 per share as compared to $2,956,000, or $0.65 per share for the first half of 1995. Including the merger expenses, net income for the six month period was $2,919,000, or $0.65 per share. Brandon's balance sheet continues to be strong with working capital at March 31, 1996 of approximately $27.8 million, current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. of approximately $33.0 million, current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. of approximately $5.2 million, and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Ira B. Brown, 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. , commented, "We are pleased to once again report record revenues for both the quarter and six month periods. The adverse winter weather conditions which impacted our entire industry, affected Brandon Brandon, city, Canada Brandon, city (1991 pop. 38,567), SW Man., Canada, on the Assiniboine River. The business center of the wheat-raising area of SW Manitoba, Brandon has an extensive trade in farm products and machinery. in particular, due to our concentration of business in the Northeast and Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians . Our operating results were also impacted by the diversion A turning aside or altering of the natural course or route of a thing. The term is chiefly applied to the unauthorized change or alteration of a water course to the prejudice of a lower riparian, or to the unauthorized use of funds. of management's attention to the proposed merger with Interim Services Inc. During the quarter, our management team has worked closely with Interim, and has developed cross-selling opportunities for both companies. We are looking forward to the merger and are confident that with the combination of Brandon's well- established reputation for providing high quality information technology services, and Interim Services' significant market presence, both companies will have substantial growth opportunities in this dynamic industry." As previously reported on February 27, 1996, Brandon and Interim signed a definitive merger agreement whereby Brandon Shareholders would receive 0.88 Interim common shares for each Brandon common share. The Proxy Statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. , which summarizes the proposed merger between Interim and Brandon, became effective and was distributed to shareholders on April 24, 1996. Shareholders will vote on the merger at a special stockholders' meeting on May 23, 1996. Brandon Systems Corporation is an Information Technology staffing company, providing outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , strategic staffing, and technical staffing solutions in computer operations, help desks, and programming. The Company's services are provided to Fortune 1000 clients from 32 offices strategically located 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. . -0-
BRANDON SYSTEMS CORPORATION
STATEMENT OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
3/31/96 4/2/95 3/31/96 4/2/95
Revenues $22,311 $20,135 $44,151 $39,259 Cost of services 13,857 12,456 27,083 23,958 Gross profit 8,454 7,679 17,068 15,301
Selling, general and
administrative expenses 6,160 5,381 12,209 10,602
Merger expenses(1) 417 -- 417 --
Other income (157) (161) (383) (311)
6,420 5,220 12,243 10,291
Income before taxes 2,034 2,459 4,825 5,010
Income taxes 790 1,008 1,906 2,054
Net Income $ 1,244 $ 1,451 $ 2,919 $ 2,956
Net income per share $ 0.27 $ 0.32 $ 0.65 $ 0.65 Weighted average common and common equivalent shares outstanding 4,531 4,564 4,522 4,551 (1) The pre-tax merger expenses of $417,000, or $0.06 per share after-tax, is related to the Company's merger agreement with Interim Services, Inc. -0- CONDENSED BALANCE SHEETS (Unaudited, in thousands)
3/31/96 10/1/95
Current assets:
Cash and marketable
securities $17,036 $18,544
Accounts receivable, net 15,007 12,580
Other current assets 926 1,108
Total current assets 32,969 32,232
Net property and equipment 2,984 2,858
Other assets 219 227
Total assets $36,172 $35,317
Current liabilities $ 5,188 $ 5,139
Stockholders' equity 30,984 30,178
Total liabilities and
stockholders' equity $36,172 $35,317
-0- CONTACT: Brandon Systems Corporation Ira B. Brown Chairman and CEO Peter Lordi Chief Financial Officer (201) 842-0700 OR Betsy Brod/Stephanie Conzelman Media Contact: Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network Froelich Morgen-Walke Associates (212) 850-5600 |
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