Pomeroy Computer Resources, Inc. -- Financial Results, Fourth Quarter and Year Ended January 5, 2003.Business Editors HEBRON Hebron, city (2003 est. pop. 155,000), the West Bank, called Al-Khalil in modern Arabic. Hebron is situated at an altitude of 3,000 ft (910 m) in a region where grapes, cereal grains, and vegetables are grown. , Ky.--(BUSINESS WIRE)--Feb. 13, 2003 Pomeroy Pomeroy may refer to:
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 :PMRY PMRY Pomeroy IT Resources (stock symbol) ), today announced results for the fourth quarter and fiscal year 2002, ended January January: see month. 5, 2003. As previously announced, the company recorded a fourth quarter increase in reserves for certain assets. The increase in reserves is specifically related to manufacturers' accounts receivables accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . The net income impact of the increase in the reserves is $2.067 million for the fourth quarter and fiscal year 2002. For the quarter, the Company recorded revenues of $149.0 million, 27.2% less than revenues of $204.5 million in Q4, 2001. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $.21 for the quarter ended January 5, 2003, before the adjustment, represent a decline of 48.8% from $.41 in Q4, 2001, before the 2001 adjustments for an increase in reserves and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). adjustments. For the same period, diluted earnings per share, after the adjustments for the increase in reserves in 2002 and the reserve and restructuring adjustments in Q4, 2001, increased to $0.05 per share from a loss of $.35 per share. For the fiscal year ended January 5, 2003, revenues decreased 13.2% to $702.8 million from $809.2 million in fiscal year 2001. For the twelve months ended January 5, 2003, diluted earnings per share of $1.26, before the adjustments taken in 2002, represent an 11.9% decrease from $1.43 for fiscal 2001, before the adjustments taken in 2001. For the same period, diluted earnings per share of $1.18, after the 2002 adjustments, represent a 93.4% increase from $.61, after the 2001 adjustments, in the comparable period in 2001. The adjustments for fiscal year 2002, after taking into account the tax effect were: $0.438 million for restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , $0.186 million for litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement, $1.6 million for tax benefits and $2.067 million for an increase in reserves. The adjustments for fiscal year 2001, after taking into account the tax effect were: $0.080 million for restructuring charges, $0.610 million for litigation settlement and $9.650 million for an increase in reserves related to manufacturers' accounts receivables. For its 2002 fiscal year, the Company has adopted FASB's Statement of Financial Accounting Standards No. 142 pursuant to which goodwill is no longer amortized. 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 impact of applying FAS 142 to the financial results for 2001 is that diluted earnings per share would have been a loss of $.30 instead of a loss of $.35 for Q4, 2001, and earnings per share of $.82 instead of $.61 for the fiscal year ended January 5, 2002. "As previously announced, we recently added 100,000 shares to our stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. We are also pleased with our liquidity position with $32 million in invested cash and our balance sheet is stronger, from a working capital and liquidity perspective, than it has ever been. Our intent is to utilize our strong balance sheet to grow market share by investing in strategic acquisitions and company sponsored programs and initiatives to enhance our customer relationships. We think this strategy will provide our shareholders with a solid return on their investment," said President Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and E. Pomeroy. As a service solution provider, Pomeroy offers three categories of service: enterprise consulting, enterprise infrastructure solutions and client management services. The Pomeroy Companies have clientele across a broad spectrum of industries, governments and educational organizations. The Pomeroy Companies employ approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1,500 individuals, more than half of whom are technical personnel, and maintain 26 regional facilities in Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). , Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Iowa, Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. , Minnesota Minnesota, state, United States Minnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces , North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Ohio, Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. and West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. . For the year ended January 5, 2003, the Pomeroy Companies reported revenues of $703 million. Certain statements that are not purely historical constitute "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. " for purposes of the Securities Act of 1933 and the Securities and Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and as such they involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those projected or anticipated. These statements are based on information available to the Company as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and the Company disclaims any intention or obligation to update any such forward-looking statements. Factors which could cause actual results to differ materially from current expectations include, but are not limited to, the estimated needs of customers as conveyed to the Company, existing market conditions including the overall demand for IT products and services, the terms of applicable agreements and certification programs and the assumptions regarding the Company's performance thereunder, the Company's ability to attract and retain technical personnel and to identify and develop expertise in future-demanded services, the Company's ability to identify suitable acquisition candidates and successfully integrate acquired companies, the nature and volume of products and services anticipated to be delivered and the Company's ability to obtain sufficient volumes of products and provide services.
POMEROY COMPUTER RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands) January 5, January 5,
2002 2003
-------- --------
ASSETS
Current Assets:
Cash $ 2,875 $ 32,505
Accounts receivable:
Trade, less allowance of $627 and $1,553
at January 5, 2002 and 2003, respectively 142,356 95,859
Vendor receivables, less allowance of
$16,112 and $3,334 at January 5, 2002
and 2003, respectively 24,219 10,297
Net investment in leases 35,809 1,966
Other 5,413 2,775
-------- --------
Total receivables 207,797 110,897
-------- --------
Inventories 20,876 11,238
Other 8,468 10,198
-------- --------
Total current assets 240,016 164,838
-------- --------
Equipment and leasehold
improvements:
Furniture, fixtures and equipment 29,920 28,741
Leasehold Improvements 5,700 5,951
-------- --------
Total 35,620 34,692
Less accumulated depreciation 17,070 15,393
-------- --------
Net equipment and
leasehold improvements 18,550 19,299
-------- --------
Net investment in leases 22,438 1,889
Goodwill 57,454 60,635
Intangible assets 1,060 540
Other assets 2,200 1,295
-------- --------
Total assets $341,718 $248,496
======== ========
POMEROY COMPUTER RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands) January 5, January 5,
2002 2003
-------- --------
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of notes payable $ 27,190 $ 541
Accounts payable:
Floor plan financing 40,650 7,533
Trade 45,797 23,632
-------- --------
Total accounts payable 86,447 31,165
Bank notes payable 11,882 -
Deferred revenue 2,751 1,490
Accrued liabilities 11,908 8,308
-------- --------
Total current liabilities 140,178 41,504
-------- --------
Notes payable 10,213 -
Deferred taxes 565 3,318
Equity:
Preferred stock, $.01 par value; authorized 2,000
shares, (no shares issued or outstanding) - -
Common stock, $.01 par value; authorized
20,000 shares, (12,759 and 12,869 shares
issued at January 5, 2002 and
2003, respectively) 128 129
Paid in capital 80,487 81,740
Retained earnings 110,979 125,988
-------- --------
191,594 207,857
Less treasury stock, at cost (75 and 355
shares at January 5, 2002 and 2003,
respectively) 832 4,183
-------- --------
Total equity 190,762 203,674
-------- --------
Total liabilities and equity $341,718 $248,496
======== ========
POMEROY COMPUTER RESOURCES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data) Fiscal Years Ended
---------------------
January 5, January 5,
2002 2003
-------- --------
Net sales and revenues:
Sales - equipment, supplies and leasing $668,748 $571,507
Service 140,466 131,293
-------- --------
Total net sales and revenues 809,214 702,800
-------- --------
Cost of sales and service:
Equipment, supplies and leasing 606,078 524,237
Service 99,859 90,898
-------- --------
Total cost of sales and service 705,937 615,135
-------- --------
Gross profit 103,277 87,665
-------- --------
Operating expenses:
Selling, general and administrative 57,492 51,157
Rent 3,631 3,311
Depreciation 4,805 4,596
Amortization 5,557 1,124
Provision for doubtful accounts 517 900
Litigation settlement 1,000 300
Provision for vendor receivables
and restructuring charge 15,934 4,048
-------- --------
Total operating expenses 88,936 65,436
-------- --------
Income from operations 14,341 22,229
-------- --------
Other expense (income):
Interest expense 1,768 541
Miscellaneous (229) (63)
-------- --------
Total other expense 1,539 478
-------- --------
Income before income tax 12,802 21,751
Income tax expense 4,993 6,742
-------- --------
Net income $ 7,809 $ 15,009
======== ========
Weighted average shares outstanding:
Basic 12,609 12,694
======== ========
Diluted 12,702 12,755
======== ========
Earnings per common share:
Basic $ 0.62 $ 1.18
======== ========
Diluted $ 0.61 $ 1.18
======== ========
POMEROY COMPUTER RESOURCES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data) Three months ended
----------------------
January 5, January 5,
2002 2003
-------- --------
Net sales and revenues:
Sales - equipment, supplies and leasing $168,724 $118,155
Service 35,749 30,796
-------- --------
Total net sales and revenues 204,473 148,951
-------- --------
Cost of sales and service:
Equipment, supplies and leasing 153,041 109,282
Service 24,608 21,378
-------- --------
Total cost of sales and service 177,649 130,660
-------- --------
Gross profit 26,824 18,291
-------- --------
Operating expenses:
Selling, general and administrative 14,015 11,682
Rent 887 761
Depreciation 1,369 1,111
Amortization 1,443 300
Provision for doubtful accounts 397 -
Litigation settlement - -
Provision for vendor receivables
and restructuring charge 15,934 3,334
-------- --------
Total operating expenses 34,045 17,188
-------- --------
Income (Loss) from operations (7,221) 1,103
-------- --------
Other expense (income):
Interest expense 205 104
Miscellaneous (44) (10)
-------- --------
Total other expense 161 94
-------- --------
Income (Loss) before income tax (7,382) 1,009
Income tax expense (benefit) (2,879) 384
-------- --------
Net income (loss) $ (4,503) $ 625
======== ========
Weighted average shares outstanding:
Basic 12,635 12,590
======== ========
Diluted 12,705 12,617
======== ========
Earnings (loss) per common share:
Basic $ (0.36) $ 0.05
======== ========
Diluted $ (0.35) $ 0.05
======== ========
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