Business Resource Group Announces Third Quarter Results.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Aug. 29, 1996--Business Resource Group announced today net revenues of $21.3 million for the third quarter ended July July: see month. 31, 1996, an increase of 75% when compared to the third quarter of 1995. Net revenues for the nine month period ended July 31, 1996 were $56.5 million, an increase of 73% over the prior year period. Net income for the third quarter of fiscal 1996 was $419,000, a decrease of 18% over the 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 in the third quarter of 1995. Net income of $1.4 million for the nine months ended July 31, 1996 increased 11% over pro forma net income in the comparable period of 1995. Earnings per share for the third quarter of 1996 was $.09 per share, on 4.9 million weighted average shares outstanding, vs. $.13 per share on 4.0 million weighted average shares outstanding, for the third quarter of 1995. Earnings per share for the nine month period ended July 31, 1996, was $.28 per share, on 4.9 million weighted average shares outstanding, vs. $.34 per share, on 3.6 million weighted average shares outstanding, for the comparable nine month period of 1995. The increase in weighted average shares outstanding was primarily due to the company's initial public offering of its common stock in June June: see month. 1995. Bookings for the third quarter totalled $19.6 million and backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. at the end of the quarter totalled $13.5 million. "We are pleased with the record revenue achieved in our third quarter and, when compared to our second quarter, the improvement in gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. and service revenues as a percentage of total revenue," said Jett Winter, President 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. . "While we are disappointed that the increasing cost associated with building infrastructure to support our revenue growth has outpaced our increases in gross margin dollars, we feel we are positioned to grow our business substantially over the longer term without the need to significantly increase operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ," added Winter. "The company remains committed to continued gross margin improvement while focusing more effort on expense containment containment Strategic U.S. foreign policy of the late 1940s and early 1950s intended to check the expansionist designs of the Soviet Union through economic, military, diplomatic, and political means. It was conceived by George Kennan soon after World War II. through both budgetary and process controls." Business Resource Group provides comprehensive workspace solutions specializing in the cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. management of change in business facilities. Headquartered in San Jose, Calif., BRG BRG Bridge BRG Bearing BRG Bundesrealgymnasium (German: state secondary school) BRG Bureau des Ressources Genetiques (France) BRG Business Relations Group BRG British Racing Green BRG Best Regards has additional offices located in Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Dallas, Denver, Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Phoenix, San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and Tucson. BRG's common stock is traded on the 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 National Market under the symbol BRGP. Except for the historical information contained herein, the matters discussed in this press release 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. that are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. Such risks and uncertainties are outlined and included from time to time in the company's other SEC Reports on Form 10-Q Form 10-Q See 10-Q. and 10-K and are available from the company upon request. -0-
BUSINESS RESOURCE GROUP
CONDENSED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
1996 1995 1996 1995
Net revenues:
Workspace products $18,495 $10,350 $49,623 $27,335
Workspace services 2,766 1,732 6,580 4,824
Vendor commission 79 113 280 452
Total net revenues 21,340 12,195 56,483 32,611
Cost of net revenues:
Workspace products 15,039 8,192 40,504 21,485
Workspace services 2,002 1,022 4,760 3,091
Total cost of net
revenues 17,041 9,214 45,264 24,576
Gross profit 4,299 2,981 11,219 8,035 Selling, general and administrative expenses 3,597 2,067 9,006 5,896 Income from operations 702 914 2,213 2,139 Interest income (expense) - net 13 (37) 94 (63) Income before income taxes 715 877 2,307 2,076 Provision for income taxes 296 253 955 274 Net income $ 419 $ 624 $1,352 $ 1,802 Net income per common and common equivalent share $ .09 $ .28 Shares used in computation 4,914 4,864 Pro forma: Historical income before income taxes $ 877 $ 2,076 Pro forma income taxes 364 861 Pro forma net income $ 513 $ 1,215 Pro forma net income per common and common equivalent share $ .13 $ .34 Pro forma shares used in computation 3,950 3,559
BUSINESS RESOURCE GROUP
CONDENSED BALANCE SHEETS
(in thousands)
July 31, Oct. 31,
1996 1995
(unaudited)
ASSETS
Current assets: Cash and equivalents $ 668 $ 5,326 Accounts receivable, net 13,559 7,168 Inventory 1,021 929 Prepaids and other current assets 1,446 941 Total current assets 16,694 14,364
Property and equipment, net 1,734 733
Other assets, net 1,015 956
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$ 19,443 $ 16,053
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Bank overdraft $ 662 $ 651 Accounts payable 2,849 2,096 Accrued liabilities 3,042 1,905 Income taxes payable 244 -- Current portion of notes payable and capital lease obligations 79 242 Total current liabilities 6,876 4,894 Notes payable and capital lease obligations 48 120 Deferred income tax liability 19 19
Shareholders' equity:
Preferred stock -- --
Common stock 49 48
Additional paid-in capital 10,685 10,558
Retained earnings 1,766 414
Total shareholders' equity 12,500 11,020
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$ 19,443 $ 16,053
CONTACT: Business Resource Group Tim Gish, 408/441-3700 |
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