Business Resource Group Announces Third Quarter Results.SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 29, 1996--Business Resource Group announced today net revenues of $21.3 million for the third quarter ended July 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 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 1995. Bookings for the third quarter totalled $19.6 million and backlog 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 and service revenues as a percentage of total revenue," said Jett Winter, President and CEO. "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," added Winter. "The company remains committed to continued gross margin improvement while focusing more effort on expense containment through both budgetary and process controls." Business Resource Group provides comprehensive workspace solutions specializing in the cost-effective management of change in business facilities. Headquartered in San Jose, Calif., BRG BRG - Bearing BRG - Best Regards BRG - Bike Repair Guy BRG - Bioengineering Research Grants BRG - Blue Red Green (uncommon variant of RGB) BRG - Borehole Research Group, Lamont-Doherty Earth Observatory BRG - Bridge BRG - British Racing Green BRG - Bundesrealgymnasium (German: state secondary school) BRG - Bureau des Ressources Genetiques (France) BRG - Business Requirement Group BRG - Business Rule Group has additional offices located in Austin, Dallas, Denver, Las Vegas, Phoenix, San Antonio, San Francisco and Tucson. BRG's common stock is traded on the NASDAQ National Market under the symbol BRGP. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements 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 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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