GTSI Announces Second Quarter 2001 Results; Revenues Increase Nearly 11% Over Second Quarter 2000.Business Editors CHANTILLY Chan·til·ly A village of northern France north of Paris. It was long noted for its fine porcelain and delicate lace. Population: 10,065. , Va.--(BUSINESS WIRE)--July 27, 2001 GTSI GTSI Government Technology Services, Incorporated GTSI Greyhound Travel Services, Inc. (former subsidiary of Greyhound Lines) GTSI Government Technology Services Inc. Corp. (Nasdaq:GTSI), formerly Government Technology Services, Inc., today announced unaudited financial results for the second quarter, which ended June June: see month. 30, 2001. Revenues for the quarter were up 10.7 percent to $151.1 million, compared to $136.5 million in the second quarter of 2000. The Company reported a net loss of $1.3 million for the quarter or $0.16 per share on a basic and 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. basis. For the second quarter of 2000, the Company reported net income of $715,000, or $0.08 per share on a basic and diluted basis. Gross margin percentage in the current quarter declined to 8.5 percent of sales from 9.2 percent in the same period last year. This decline in gross margin percentage primarily reflects tighter contract margins over those recorded in the second quarter of 2000. In the second quarter of 2001, 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. increased by $3.7 million, or 31.1 percent, from the $12.0 million in operating expenses recorded in the same quarter last year. This increase primarily reflects the Company's plan to hire additional sales personnel to achieve increased sales in the second half of 2001 and beyond. The Company recorded a tax benefit for the second quarter of $839,000 based on the effective rate of approximately 38.5 percent. In the fourth quarter and full year of 2000, the Company's effective tax rate was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. affected by the recognition of its previously reserved tax assets, which resulted in a $2.0 million income tax benefit. In the six-month period ended June 30, 2001, revenues grew $42.8 million, or 16.6 percent, to $300.4 million, compared to $257.6 million in the same period in 2000. Gross margin percentage for the first six months of 2001 also grew slightly to 8.5 percent, versus 8.4 percent in the same period in 2000. The Company reported a net loss of $2.5 million, or a net loss of $0.31 per share on a basic and diluted basis, for the six-month period ended June 30, 2001, versus a net loss of $1.9 million, or net loss of $0.21 per share on a basic and diluted basis, for the same period in 2000. GTSI 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. Dendy Dendy can have the following meanings.
"Our objective at the beginning of 2001 was to position the Company for growth in this and subsequent years. We knew that to accomplish this, we would have to invest in our sales force and in key internal systems. Our revenue growth for this quarter over last year clearly shows that we are making progress, but there is much more to be done. We remain committed to implementing our strategy. "We continue to win important contracts, partner with vendors whose products are in great demand, and serve our customers exceptionally well. We are adding new Technology Teams that are successfully implementing networking and other high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. solutions for our customers. We see solid opportunities ahead of us across our market. "In May, we finally received word that the GAO had denied the last legal challenge to our new MMAD MMAD Mass Median Aerodynamic Diameter MMAD Musicians Making A Difference MMAD Maxi-Minis And Databases MMAD Medical Marijuana Access Division MMAD Minerva McGonagall Albus Dumbledore (Harry Potter fanfiction) contract. We are ramping up to make this a major contract vehicle for our customers over the next five years. We recently were one of five awardees to win a $600 million Air Force PC BPA BPA British Paediatric Association. and one of two to win a recompete for a significant Air Force BPA. We also just won an important new BPA with the US Marine Corps for ruggedized laptops and a new contract with the Commonwealth of Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). to provide a wide range of computer products. While taking advantage of these opportunities will require investment on our part, this investment will create shareholder value by strengthening us for the long term. "We see other important signs of progress. We have strengthened existing vendor partnerships and created new ones with companies like Silicon Graphics, Aaxion, Network One and Solid Data Systems. We have formed one Technology Team devoted to storage and another dedicated to scientific and engineering customers. Our Technology Teams continue to provide governments - federal, state and local - with the depth of knowledge and engineering support they need to select and implement complex computer systems. "We also have concentrated on attracting and retaining a first-rate management team. Responding to the government's emphasis on e-Commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. , e-Procurement (Electronic-PROCUREMENT) Purchasing online. E-procurement systems are used to obtain materials and parts via the Web or using traditional EDI standards either for internal manufacturing (direct procurement) or office supplies and equipment (indirect procurement). and e-Business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. , we hired Johnny Wilkinson Noun 1. Wilkinson - English chemist honored for his research on pollutants in car exhausts (born in 1921) Sir Geoffrey Wilkinson as our Vice President for E-Business in May. To lead our newly enhanced sales effort, we are very pleased to have recruited Terri People with the name Terri include:
American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. as our new Senior Vice President of Sales. Both add talent and experience to our management team, positioning us well to improve our bottom line. "We are very focused on future growth and profitability. As we approach the government's busy season, we see activity increasing on all sides. There will be significant opportunity for us in the months ahead, despite the current turmoil in commercial markets. As we look to the future, we plan to continue to strengthen our sales coverage, improve our bottom line, grow our revenues and margins and enhance customer relationships. We have been gearing up to meet the needs of our customers over the next five months and we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the results of our efforts will be very positive." Except for historical information, all of the statements, expectations and assumptions contained in the foregoing 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. " (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) that involve a number of risks and uncertainties. It is possible that the assumptions made by management -- including, but not limited to, those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc revenue, margins, contract awards, success with web development, and contributions to customers' increased efficiency-- may not materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. . Actual results may differ materially from those projected or implied in any forward-looking statements. In addition to the above factors, other important factors that could cause actual results to differ materially are those listed in the Company's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and included from time to time in other documents filed by the Company with the Securities and Exchange Commission. GTSI is the most experienced business to government (B2G (Business to Government) Refers to commercial enterprises selling to government agencies. See B2B. ) marketer of information technology solutions to Federal, state and local government customers worldwide. GTSI is headquartered in the Washington, D.C. metropolitan area and offers access to 250,000 products from more than 1,300 manufacturers. GTSI also offers customers multiple integration services to meet their needs. See http://www.gtsi.com NOTE: An investor conference call to discuss 2001 first quarter earnings is scheduled for 12:00 noon, Eastern Time, on July 30, 2001. Interested parties are invited to participate by calling 877/526-5213, International number is 706/643-1826. Neither number requires a passcode. To participate, please ask for GTSI. In addition, you may access the web cast of GTSI's Investor Relations Investor relations The process by which the corporation communicates with its investors. page (www.gtsi.com/ir). GTSI is a registered service mark of GTSI Corp. All other trademarks and service marks are proprietary to their respective owners.
Unaudited Financial Results for Q2 2001 follow:
GTSI Corp.
(in thousands, except per share data)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
6/30/2001 6/30/2000 6/30/2001 6/30/2000
--------- --------- --------- ---------
Sales $ 151,090 $ 136,468 $ 300,379 $ 257,601
Cost of sales 138,250 123,929 274,773 235,893
--------- --------- --------- ---------
Gross margin 12,840 12,539 25,606 21,708
Operating expenses 15,697 11,978 31,056 24,071
--------- --------- --------- ---------
(Loss) income from
operations (2,857) 561 (5,450) (2,363)
Interest income, net (679) (154) (1,334) (893)
--------- --------- --------- ---------
(Loss) income
before income
taxes and
cumulative effect
of SAB No. 101
adoption (2,178) 715 (4,116) (1,470)
Income tax benefit (839) -- (1,586) --
--------- --------- --------- ---------
Net (loss) income
before cumulative
effect of SAB No
101 adoption $ (1,339) $ 715 $ (2,530) $ (1,470)
--------- --------- --------- ---------
Cumulative effect
of SAB No. 101
adoption -- -- -- (467)
--------- --------- --------- ---------
Net (loss) income $ (1,339) $ 715 $ (2,530) $ (1,937)
========= ========= ========= =========
Basic net (loss)
income per share
before cumulative
effect of SAB No
101 adoption $ (0.16) $ 0.08 $ (0.31) $ (0.16)
========= ========= ========= =========
Diluted net (loss)
income per share
before cumulative
effect of SAB No
101 adoption $ (0.16) $ 0.08 $ (0.31) $ (0.16)
========= ========= ========= =========
Basic net (loss)
income per share $ (0.16) $ 0.08 $ (0.31) $ (0.21)
========= ========= ========= =========
Diluted net (loss)
income per share $ (0.16) $ 0.08 $ (0.31) $ (0.21)
========= ========= ========= =========
Weighted average
shares
outstanding:
Basic 8,157 9,336 8,099 9,308
========= ========= ========= =========
Diluted 8,157 9,351 8,099 9,308
========= ========= ========= =========
GTSI Corp.
(in thousands)
June 30, Dec. 31,
2001 2000
-------- --------
ASSETS
Current assets: $153,128 $209,099
Property and equipment, net 12,198 12,830
Other assets 6,610 5,136
-------- --------
Total assets $171,936 $227,065
======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities $108,857 $165,440
Notes payable, net of current
portion -- 1,000
Other liabilities 5,928 2,145
-------- --------
Total liabilities 114,785 168,585
-------- --------
Stockholders' equity 57,151 58,480
-------- --------
Total liabilities and
stockholders' equity $171,936 $227,065
======== ========
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