GTSI Delivers Record Sales for Third Quarter; Growth Seen in Both Civilian and Defense Agencies.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. -- GTSI GTSI Government Technology Services, Incorporated GTSI Greyhound Travel Services, Inc. (former subsidiary of Greyhound Lines) GTSI Government Technology Services Inc. (R) Corp. (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 :GTSI), a leading government technology solutions provider, today announced financial results for the quarter ended September September: see month. 30, 2004, and monthly sales for September 2004 (see attached tables). For the third quarter 2004, GTSI reported sales of $330.6 million, a 21.1% increase from $273.1 million during the same period a year ago. The company reported $10.5 million of net income versus $3.5 million of net income a year ago. Reported earnings per share (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. ) for the third quarter were $1.13, an increase over EPS of $0.39 from the same period a year ago. Reported EPS for the nine months ended September 30 was $0.80 versus $0.31 for the same period a year ago. During the quarter, GTSI reversed certain aged accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. of $10.1 million, decreasing cost of sales and increasing gross margin. For comparative purposes, adjusting for this quarter's accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. liability reversal, net of tax, net income for the third quarter 2004 would have been $4.3 million and EPS would have been $0.47 for the quarter and $0.15 for the nine months ended September 30, 2004. "The third quarter results marked the largest quarterly sales in the history of the company. The GTSI team performed well, going deeper and wider with customers and offering the most sought after technology solutions," said Dendy Dendy can have the following meanings.
Federal IT Budget Trends On September 29th, with only two out of the 13 appropriations bills enacted, 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. Congress passed a continuing resolution A continuing resolution is a type of appropriations legislation used by the United States Congress to fund government agencies if a formal appropriations bill has not been signed into law by the end of the Congressional fiscal year. (CR) carrying current FY04 spending for federal agencies through November November: see month. 20th. The stopgap funding measure, the eighth since 1996, acknowledged that Congress would not finish its spending bill before the October October: see month. 1st start of the new fiscal year. A "lame duck An elected official, who is to be followed by another, during the period of time between the election and the date that the successor will fill the post. The term lame duck generally describes one who holds power when that power is certain to end in the near future. " session is expected in November to either complete the appropriations process or to enact a new CR. "CR's have become a way of life for our customers," said Mr. Young, "but continued pent-up pent-up adj. Not given expression; repressed: pent-up emotions. pent-up Adjective not released; repressed: demand for IT solutions gives us great promise for continued growth in IT spending. Recently an industry and government study found that IT spending is expected to grow to $72.6 billion by the end of the decade from $59 billion in President Bush's 2005 IT budget request. This fact, coupled with the ever increasing concern about securing networks and physical infrastructure and storing the vast amounts of critical data, leads us to believe that the growth estimates may be conservative." Financial Position Tom Mutryn, GTSI's Senior Vice President and Chief Financial Officer, commented, "GTSI's 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 in the quarter to $30.4 million versus $22.6 million in the same quarter a year ago. This increase is chiefly related to our continuing aggressive efforts to comply with the Sarbanes-Oxley (SOX (1) (Schema for Object-oriented XML) An XML schema developed by Veo Systems and Muzino Communications, which was submitted to the W3C. SOX is based on DTD, but adds data typing and reuse mechanisms. ) 404 requirement, the final build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. of our new Enterprise Resource Planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) system, and increased costs associated with new hires supporting our strategic growth plan. The company continues to enjoy a solid balance sheet with 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. ." GTSI's effort to comply with SOX 404 is expected to have a material negative effect on 2004 and 2005 results. Reported gross margin was $46.7 million in the third quarter 2004 versus $27.5 million a year ago. This represents an increase in gross margin percentage from 10.1% in the third quarter of 2003 to 14.1% in the third quarter of 2004. Without the accrued liability reversal, gross margin for the third quarter 2004 would have been $36.6 million, a gross margin percentage of 11.1%. September 2004 Monthly Results Sales for September 2004 were $156.2 million, representing a 18.2% increase of average daily sales from September 2003 of $132.2 million. Month-end total 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. for September was $257.0 million or a 12.6% increase versus $228.3 million for the month-end September 2003. Monthly bookings for September were $220.4 million or a 3.7% decrease versus $228.9 million for the same period last year (see attached table). Selected Quarterly Highlights --GTSI is designing and implementing an end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. security surveillance system for Super Bowl XXXIX Super Bowl XXXIX was the 39th championship game of the modern National Football League (NFL). The game was played on February 6, 2005, at ALLTEL Stadium in Jacksonville, Florida, following the 2004 regular season. to be held February February: see month. 6, 2005 through a contract awarded by the City of Jacksonville. --Strategic new hires, including --Barry Culman, as Chief Business Architect --Ken Everist, as Vice President of Pricing --David Samuels, as Vice President of Finance and Corporate Controller --Announced Radio Frequency Identification See RFID. (RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. ) services to ensure that GTSI and its vendor partners are fully compliant with the January 1, 2005 Department of Defense requirements to have RFID on shipped products. --Teamed with two of eight award winners, General Dynamics General Dynamics Corporation (NYSE: GD) is a defense conglomerate formed by mergers and divestitures, and as of 2006 it is the sixth largest defense contractor in the world[1]. The company has changed markedly in the post-Cold War era of defense consolidation. and Centech, on NetCents, a five year Air Force contract (indefinite-delivery, indefinite quantity Noun 1. indefinite quantity - an estimated quantity quantity, measure, amount - how much there is or how many there are of something that you can quantify ) with a ceiling of $9 billion. --Continued to build an organization which will allow the company to reach its goal of doubling annual sales by 2007. At the end of the third quarter, GTSI had over 800 employees and is on track to reach 850 by year-end. --Created GTSI 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. Inc., a fully integrated financing subsidiary facilitating financing transactions across the company's sales operations. Conference Call An investor conference call to discuss third quarter 2004 is scheduled for 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy October 29, 2004. Interested parties are invited to participate by calling 800-247-9979 or 973-409-9254, no pass code is required. In addition, you may access the webcast on GTSI's Investor Relations Investor relations The process by which the corporation communicates with its investors. page (www.gtsi.com/ir). Webcast will be available for replay through October 29, 2005. To listen to the live call on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , go to the web site at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. A replay will be available following the conclusion of the call until November 3, 2004. To access the replay, please dial 877-519-4471 or 973-341-3080, PIN number 5315999. About GTSI Corp. GTSI Corp. is the leading information technology product and solutions aggregator focusing exclusively on Federal, State, and Local government customers worldwide. GTSI also focuses on systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. on behalf of government programs. For more than two decades, GTSI has served its customers by teaming with global IT leaders like Panasonic, Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. , HP, Cisco, and Microsoft. Offering a broad range of products and services, an extensive contract portfolio, and ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001:2000 standard for quality management, GTSI uses its unique Technology Practices to deliver exceptional solutions that help government customers support its critical transformation efforts. GTSI is headquartered in Northern Virginia Northern Virginia (NoVA) consists of Arlington, Fairfax, Loudoun, and Prince William counties and the independent cities of Alexandria, Falls Church, Fairfax, Manassas, and Manassas Park. , outside of Washington, D.C. Further information about the Company is available at www.GTSI.com/About. Except for historical information, all of the statements, expectations, beliefs 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, operating results and net income, and the effect of new contracts as well as new vendor relationships -- 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 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 and GTSI.com are registered trademarks of GTSI Corp. in the U.S. and other Countries. All trade names are the property of their respective owners.
GTSI Corp.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
September 30, Change from 2003
2004 2003 Actual Percentage
--------- --------- --------- ----------
Sales $330,645 $273,066 $57,579 21.1%
Cost of sales 283,922 245,569 38,353 15.6%
--------- --------- --------- ----------
Gross margin 46,723 27,497 19,226 69.9%
Operating expenses 30,404 22,640 7,764 34.3%
--------- --------- --------- ----------
Income from operations 16,319 4,857 11,462 236.0%
Interest and other income,
net 958 840 118 14.0%
--------- --------- --------- ----------
Income before income taxes 17,277 5,697 11,580 203.3%
Income tax provision 6,823 2,227 4,596 206.4%
--------- --------- --------- ----------
Net income $10,454 $3,470 $6,984 201.3%
========= ========= ========= ==========
Basic earnings per share $1.21 $0.42 $0.79 187.1%
========= ========= ========= ==========
Diluted earnings per share $1.13 $0.39 $0.74 192.5%
========= ========= ========= ==========
Weighted average shares
outstanding:
Basic 8,646 8,238 408 5.0%
========= ========= ========= ==========
Diluted 9,255 8,986 269 3.0%
========= ========= ========= ==========
GTSI Corp.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Nine Months Ended
September 30, Change from 2003
2004 2003 Actual Percentage
--------- --------- --------- ----------
Sales $748,257 $641,661 $106,596 16.6%
Cost of sales 661,915 575,333 86,582 15.0%
--------- --------- --------- ----------
Gross margin 86,342 66,328 20,014 30.2%
Operating expenses 76,723 63,955 12,768 20.0%
--------- --------- --------- ----------
Income from operations 9,619 2,373 7,246 305.4%
Interest and other income,
net 2,809 2,317 492 21.2%
--------- --------- --------- ----------
Income before income taxes 12,428 4,690 7,738 165.0%
Income tax benefit 4,909 1,834 3,075 167.7%
--------- --------- --------- ----------
Net income $7,519 $2,856 $4,663 163.3%
========= ========= ========= ==========
Basic earnings per share $0.88 $0.34 $0.53 155.9%
========= ========= ========= ==========
Diluted earnings per share $0.80 $0.31 $0.49 155.8%
========= ========= ========= ==========
Weighted average shares
outstanding:
Basic 8,592 8,352 240 2.9%
========= ========= ========= ==========
Diluted 9,355 9,088 267 2.9%
========= ========= ========= ==========
GTSI Corp.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
Change % Change
September December from from
30, 31, December December
2004 2003 31, 2003 31, 2003
---------- ---------- ---------- ---------
ASSETS
Current assets:
Cash $136 $177 $(41) -23.2%
Accounts receivable, net 226,733 181,988 44,745 24.6%
Merchandise inventories 84,393 55,987 28,406 50.7%
Other current assets 13,342 15,490 (2,148) -13.9%
---------- ---------- ---------- ---------
Total current assets 324,604 253,642 70,962 28.0%
Property and equipment, net 14,165 10,670 3,495 32.8%
Other assets 2,420 4,449 (2,029) -45.6%
---------- ---------- ---------- ---------
TOTAL ASSETS $341,189 $268,761 $72,428 26.9%
========== ========== ========== =========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Notes payable to banks $- $12,813 $(12,813) -100.0%
Accounts payable 225,221 152,435 72,786 47.7%
Accrued liabilities 16,682 11,168 5,514 49.4%
Deferred revenue 5,978 8,323 (2,345) -28.2%
Accrued warranties 4,197 4,555 (358) -7.9%
---------- ---------- ---------- ---------
Total current
liabilities 252,078 189,294 62,784 33.2%
Other liabilities 1,148 1,522 (374) -24.6%
---------- ---------- ---------- ---------
Total liabilities 253,226 190,816 62,410 32.7%
Stockholders' equity 87,963 77,945 10,018 12.9%
---------- ---------- ---------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $341,189 $268,761 $72,428 26.9%
========== ========== ========== =========
GTSI Corp.
Business Year-over-Year Month-End Total
Days in Sales ($ in Change Average Backlog ($ in
Month Millions) Daily Sales Millions)
-------- ------------ --------------- ---------------
January 2002 22 $46.8 - $72.2
February 2002 19 50.3 - 99.7
March 2002 20 79.6 - 93.5
April 2002 22 46.0 - 102.8
May 2002 22 61.4 - 115.3
June 2002 20 93.6 - 118.4
July 2002 22 74.2 - 121.9
August 2002 22 82.6 - 131.2
September 2002 20 120.0 - 203.6
October 2002 23 104.5 - 161.2
November 2002 19 94.0 - 106.6
December 2002 21 81.7 - 91.3
January 2003 22 53.5 14.3% 92.5
February 2003 19 55.8 10.9% 85.1
March 2003 21 69.6 -16.7% 72.2
April 2003 22 48.3 5.0% 89.8
May 2003 20 60.4 8.2% 86.8
June 2003 21 81.0 -17.6% 106.2
July 2003 22 75.5 1.8% 116.5
August 2003 21 65.4 -17.1% 131.6
September 2003 21 132.2 4.9% 228.3
October 2003 23 113.0 8.1% 192.9
November 2003 18 93.2 4.7% 144.0
December 2003 22 106.3 24.2% 102.8
January 2004 21 58.4 14.4% 89.6
February 2004 19 52.3 -6.3% 83.1
March 2004 23 67.9 -10.9% 98.0
April 2004 22 73.8 52.8% 123.0
May 2004 20 72.2 19.5% 132.9
June 2004 22 93.0 9.6% 155.0
July 2004 21 89.5 24.2% 173.0
August 2004 22 84.9 23.9% 192.8
September 2004 21 156.2 18.2% 257.0
Monthly Bookings Year-over-Year
Year-over-Year ($ in Change Average
Change Millions) Daily Bookings
-------------- ---------------- ---------------
-
January 2002 - $42.4 -
February 2002 - 77.8 -
March 2002 - 73.4 -
April 2002 - 55.3 -
May 2002 - 73.9 -
June 2002 - 96.7 -
July 2002 - 77.7 -
August 2002 - 91.9 -
September 2002 - 192.4 -
October 2002 - 62.1 -
November 2002 - 39.4 -
December 2002 - 66.4 -
January 2003 28.1% 54.7 29.0%
February 2003 -14.6% 48.4 -37.8%
March 2003 -22.8% 56.7 -26.4%
April 2003 -12.7% 65.9 19.2%
May 2003 -24.7% 57.4 -14.6%
June 2003 -10.3% 100.4 -1.1%
July 2003 -4.4% 85.8 10.4%
August 2003 0.3% 80.5 -8.2%
September 2003 12.1% 228.9 13.3%
October 2003 19.7% 77.6 25.0%
November 2003 35.1% 44.3 18.7%
December 2003 12.6% 65.1 -6.4%
January 2004 -3.1% 45.2 -13.4%
February 2004 -2.4% 45.8 -5.4%
March 2004 35.7% 82.8 33.3%
April 2004 37.0% 98.8 49.9%
May 2004 53.1% 82.1 43.0%
June 2004 46.0% 115.1 9.4%
July 2004 48.5% 107.5 31.3%
August 2004 46.5% 104.7 24.2%
September 2004 12.6% 220.4 -3.7%
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