Pomeroy IT Solutions, Inc. - Financial Results, Fourth Quarter and Year Ended January 5, 2005.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. -- 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 2004, ended January January: see month. 5, 2005. For the fourth quarter, the Company recorded revenues of $208.4 million, a 27.9% increase from revenues of $163.0 million in Q4, 2003. 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 $0.30 for the quarter ended January 5, 2005, represent an increase of 25.0 % from $0.24 in Q4, 2003. For the fiscal year ended January 5, 2005, revenues increased 24.0% to $742.3 million from $598.4 million in fiscal year 2003. For the twelve months ended January 5, 2005, diluted earnings per share of $1.00, before the adjustment taken in 2004, represents a 35.1% increase from $0.74 for fiscal 2003, before the adjustment taken in 2003. For the same period, diluted earnings per share of $0.88, after the 2004 adjustment, represents a 20.5% increase from $0.73, after the 2003 adjustment. The adjustment for 2004, as previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , was 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). and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charges. The adjustment for fiscal year 2003 was due to a 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. "We continue to focus on customer satisfaction as well as execution of our market development and penetration The successful unauthorized breach of a security perimeter. See penetration test. strategies. We are also beginning to recognize synergies and strategic benefits from the integration of Alternative Resources Corporation, our recent acquisition," said President Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Pomeroy. As a national solutions provider, Pomeroy is uniquely positioned to provide services that span consulting, infrastructure and life cycle services. Pomeroy maintains a technical workforce of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4,000 skilled employees with the capabilities and expertise to plan, design, implement and support all categories of its solution offerings. Pomeroy has the ability to leverage its extensive portfolio of services to assist clients in reducing their total cost of ownership, allowing these savings to be reinvested back into the customer's core business. Pomeroy has clientele across a broad spectrum of industries, governments and educational organizations. 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 IT SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands) January 5, January 5,
2005 2004
---------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $ 17,669 $ 40,200
Accounts receivable:
Trade, less allowance of $1,230 and $2,556 at
January 5, 2005 and 2004, respectively 143,113 111,324
Vendor receivables, less allowance of $100
at January 5, 2005 and 2004, respectively 5,790 7,226
Net investment in leases 3,814 2,056
Other 2,902 2,043
---------- ----------
Total receivables 155,619 122,649
---------- ----------
Inventories 17,188 12,453
Other 10,302 5,193
---------- ----------
Total current assets 200,778 180,495
---------- ----------
Equipment and leasehold improvements:
Furniture, fixtures and equipment 30,113 29,517
Leasehold Improvements 6,187 6,438
---------- ----------
Total 36,300 35,955
Less accumulated depreciation 21,061 19,696
---------- ----------
Net equipment and leasehold improvements 15,239 16,259
---------- ----------
Net investment in leases, net of current portion 1,650 2,935
Goodwill 109,913 67,664
Intangible assets 3,702 436
Other assets 1,606 1,410
---------- ----------
Total assets $ 332,888 $ 269,199
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POMEROY IT SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands) January 5, January 5,
2005 2004
---------- ----------
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of notes payable $ 912 $ 912
Short-term borrowings 20,153 -
Accounts payable:
Floor plan financing 19,393 16,572
Trade 53,263 33,479
---------- ----------
Total accounts payable 72,656 50,051
Deferred revenue 3,490 3,988
Employee compensation and benefits 8,245 2,425
Accrued restructuring and severance charges 7,585 -
Other current liabilities 6,778 6,333
---------- ----------
Total current liabilities 119,819 63,709
---------- ----------
Notes payable, net of current portion 250 913
Deferred income taxes 97 4,780
Equity:
Preferred stock, $.01 par value; authorized
2,000 shares, (no shares issued or
outstanding) - -
Common stock, $.01 par value; authorized 20,000
shares, (13,160 and 12,943 shares issued at
January 5, 2005 and 2004, respectively) 132 130
Paid in capital 84,931 82,696
Accumulated other comprehensive loss (78) -
Retained earnings 136,483 125,250
---------- ----------
221,468 208,076
Less treasury stock, at cost (778 and 738
shares at January 5, 2005 and 2004,
respectively) 8,746 8,279
---------- ----------
Total equity 212,722 199,797
---------- ----------
Total liabilities and equity $ 332,888 $ 269,199
========== ==========
POMEROY IT SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share data) Fiscal Years Ended
---------------------
January 5, January 5,
2005 2004
---------- ----------
Net sales and revenues:
Sales - equipment, supplies and leasing $ 545,115 $ 470,518
Service 197,175 127,905
---------- ----------
Total net sales and revenues 742,290 598,423
---------- ----------
Cost of sales and service:
Equipment, supplies and leasing 504,018 435,048
Service 143,136 92,982
---------- ----------
Total cost of sales and service 647,154 528,030
---------- ----------
Gross profit 95,136 70,393
---------- ----------
Operating expenses:
Selling, general and administrative 66,449 46,769
Rent 3,448 3,149
Depreciation 4,029 4,915
Amortization 364 404
Provision for doubtful accounts - 200
Litigation settlement - 150
Restructuring and severance charges 2,423 -
---------- ----------
Total operating expenses 76,713 55,587
---------- ----------
Income from operations 18,423 14,806
---------- ----------
Other expense (income):
Interest, net 251 (75)
Miscellaneous 26 11
---------- ----------
Total other expense (income) 277 (64)
---------- ----------
Income before income tax 18,146 14,870
Income tax expense 7,213 5,799
---------- ----------
Net income $ 10,933 $ 9,071
========== ==========
Weighted average shares outstanding:
Basic 12,253 12,305
========== ==========
Diluted 12,442 12,375
========== ==========
Earnings per common share:
Basic $ 0.89 $ 0.74
========== ==========
Diluted $ 0.88 $ 0.73
========== ==========
POMEROY IT SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands) Year Ended
---------------------
January 5, January 5,
2005 2004
---------- ----------
Net income $ 10,933 $ 9,071
Other comprehensive loss:
Foreign currency translation adjustment, net of
tax (78) -
---------- ----------
Comprehensive income $ 10,855 $ 9,071
========== ==========
POMEROY IT SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share data) Three Months Ended
---------------------
January 5, January 5,
2005 2004
---------- ----------
Net sales and revenues:
Sales - equipment, supplies and leasing $ 137,391 $ 128,639
Service 71,026 34,382
---------- ----------
Total net sales and revenues 208,417 163,021
---------- ----------
Cost of sales and service:
Equipment, supplies and leasing 126,380 118,862
Service 51,451 25,095
---------- ----------
Total cost of sales and service 177,831 143,957
---------- ----------
Gross profit 30,586 19,064
---------- ----------
Operating expenses:
Selling, general and administrative 21,879 12,142
Rent 997 752
Depreciation 1,061 1,272
Amortization 163 44
---------- ----------
Total operating expenses 24,100 14,210
---------- ----------
Income from operations 6,486 4,854
---------- ----------
Other expense (income):
Interest expense 250 (54)
Miscellaneous (1) 10
---------- ----------
Total other expense (income) 249 (44)
---------- ----------
Income before income tax 6,237 4,898
Income tax expense 2,538 1,910
---------- ----------
Net income $ 3,699 $ 2,988
========== ==========
Weighted average shares outstanding:
Basic 12,284 12,200
========== ==========
Diluted 12,512 12,367
========== =========
Earnings per common share:
Basic $ 0.30 $ 0.25
========== ==========
Diluted $ 0.30 $ 0.24
========== ==========
POMEROY IT SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands) Three Months Ended
---------------------
January 5, January 5,
2005 2004
---------- ----------
Net income $ 3,699 $ 2,988
Other comprehensive loss:
Foreign currency translation adjustment, net of
tax (42) -
---------- ----------
Comprehensive income $ 3,657 $ 2,988
========== ==========
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