Pomeroy IT Solutions, Inc. Announces the Filing of Fiscal 2005 Third Quarter Results and Restated Fiscal 2005 First and Second Quarter Results.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 :PMRYE) today announced that it has filed its quarterly reports on Form 10-Q Form 10-Q See 10-Q. for the period ended October October: see month. 5, 2005 and the 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 restated quarterly reports on Form 10-Q for the periods ended April 5, 2005 and July July: see month. 5, 2005. For the fiscal third quarter ended October 5, 2005, the Company recorded revenues of $185.0 million, a 7.7% decline from revenues of $200.5 million in the third quarter of fiscal 2004. The 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. loss per share in the fiscal third quarter of 2005 was $(0.12), which included an extraordinary provision for doubtful accounts 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). 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, and represented a decline from 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 $0.15 in the prior year period. Excluding the provision and charges, the third quarter 2005 diluted earnings per share were $0.06. For the nine months ended October 5, 2005, revenues increased 1.7% to $542.9 million from $533.9 million in the prior year period. For this nine month period of fiscal 2005, diluted earnings per share were $0.11, inclusive of inclusive of prep. Taking into consideration or account; including. the provision and charges described above, which represented a decline of 81.0% from the diluted earnings per share of $0.58 in the prior year period. Excluding the provision and charges, diluted earnings per share for the fiscal 2005 nine-month period were $0.29. "We are pleased to have now completed the filing of the fiscal 2005 third quarter results along with the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. process for the first two quarters of fiscal 2005," said 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, 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. of the Company. "Our main focus in 2006 will be on controlling costs and improving service margins, while maintaining customer satisfaction," said Mr. Pomeroy. The Company amended its financial statements for the first and second quarter of fiscal 2005. The table below highlights selected income statement items ($000's except per share amounts):
First Quarter First Quarter Second Quarter Second Quarter
As Previously As As Previously As
Reported Amended Reported Amended
Revenue 165,590 165,832 193,671 192,025
Net Income 1,750 565 3,111 2,365
Earnings per
Share (diluted) $0.14 $0.04 $0.25 $0.19
The Company plans to conduct a conference call to discuss the restated financial statements, the third quarter results and the full fiscal year 2005 results after the 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. for fiscal 2005 is filed. As a national solutions provider, Pomeroy provides services that include: outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , application development, systems integration and other maintenance and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . The Company maintains a workforce of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3,000 skilled, technical employees with the capabilities to plan, design, implement and support all categories of its consulting, infrastructure and lifecycle solutions offerings. Pomeroy helps clients leverage IT as an enabler to increase productivity, reduce costs and improve profitability. Pomeroy has clientele across a broad spectrum of industries, governments and educational organizations. The Company reported revenues of $742 million for the year ended January January: see month. 5, 2005. Certain of the statements in the preceding paragraphs regarding reporting financial results 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 Exchange Act of 1934, as amended, 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. Factors which could cause actual results to differ materially from current expectations include, but are not limited to, the nature and volume of products and services anticipated to be delivered, the mix of the products and services businesses, the type of services delivered, the Company's need for outside consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , new acquisitions by the Company, terms of applicable customer and vendor agreements and certification programs and the assumptions regarding the ability to perform thereunder, the ability to implement the company's best practices strategies, the ability to manage risks associated with customer projects, existing market and competitive conditions including the overall demand for IT products and services, and the ability to attract and retain technical and other highly skilled personnel.
POMEROY IT SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands) October 5, January 5,
2005 2005
----------- ----------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $129 $13,108
Certificates of deposit 4,638 4,561
Accounts receivable:
Trade, less allowance of $4,289 at October
5, 2005 and $1,462 at January 5, 2005 130,007 143,113
Vendor receivables, less allowance of $100
at October 5, 2005 and January 5, 2005 5,769 5,790
Net investment in leases 3,146 3,814
Other 2,590 2,902
----------- ----------
Total receivables 141,512 155,619
----------- ----------
Inventories 13,832 17,188
Other 9,375 10,302
----------- ----------
Total current assets 169,486 200,778
----------- ----------
Equipment and leasehold improvements:
Furniture, fixtures and equipment 30,735 30,113
Leasehold improvements 6,591 6,187
----------- ----------
Total 37,326 36,300
Less accumulated depreciation 23,915 21,061
----------- ----------
Net equipment and leasehold
improvements 13,411 15,239
----------- ----------
Net investment in leases, net of current
portion 977 1,650
Goodwill 115,626 109,913
Intangible assets, net 3,078 3,702
Other assets 2,373 1,606
----------- ----------
Total assets $304,951 $332,888
=========== ==========
POMEROY IT SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands) October 5, January 5,
2005 2005
----------- -----------
(Unaudited)
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of notes payable $ - $ 912
Short-term borrowings 3,686 20,153
Accounts payable 56,815 72,656
Deferred revenue 3,368 3,490
Employee compensation and benefits 7,760 8,245
Accrued restructuring and severance charges 6,007 7,585
Other current liabilities 8,651 6,778
----------- -----------
Total current liabilities 86,287 119,819
----------- -----------
Notes payable, less current portion - 250
Deferred income taxes 2,134 97
Commitments and contingencies
Equity:
Preferred stock, $.01 par value; authorized
2,000 shares (no shares issued or
outstanding) - -
Common stock, $.01 par value; authorized
20,000 shares (13,400 and 13,188 shares
issued at October 5, 2005 and January 5,
2005, respectively) 134 132
Paid-in capital 87,861 85,231
Accumulated other comprehensive income
(loss) 24 (78)
Retained earnings 137,633 136,183
----------- -----------
225,652 221,468
Less treasury stock, at cost ( 810 and 778
shares at October 5, 2005 and January 5,
2005, respectively) 9,122 8,746
----------- -----------
Total equity 216,530 212,722
----------- -----------
Total liabilities and equity $ 304,951 $ 332,888
=========== ===========
POMEROY IT SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands,except earnings per share data) Three Months Ended
-----------------------
October 5, October 5,
2005 2004
----------- -----------
(Unaudited) (Unaudited)
Net sales and service revenues:
Sales - equipment, supplies and leasing $129,281 $139,403
Service 55,720 61,101
----------- -----------
Total net sales and service revenues 185,001 200,504
----------- -----------
Cost of sales and service:
Sales - equipment, supplies and leasing 120,058 129,621
Service 42,427 44,433
----------- -----------
Total cost of sales and service 162,485 174,054
----------- -----------
Gross profit 22,516 26,450
----------- -----------
Operating expenses:
Selling, general and administrative 19,005 18,818
Rent expense 830 906
Depreciation 1,187 1,052
Amortization 164 122
Provision for doubtful accounts 2,000 -
Restructuring and severance charges 1,662 2,423
----------- -----------
Total operating expenses 24,848 23,321
----------- -----------
Income (loss) from operations (2,332) 3,129
----------- -----------
Other expense:
Interest, net 152 32
Other 4 4
----------- -----------
Total other expense 156 36
----------- -----------
Income (loss) before income tax (2,488) 3,093
Income tax expense (benefit) (1,008) 1,221
----------- -----------
Net income (loss) $(1,480) $1,872
=========== ===========
Weighted average shares outstanding:
Basic 12,583 12,240
=========== ===========
Diluted 12,583 12,366
=========== ===========
Earnings (loss) per common share:
Basic $(0.12) $0.15
=========== ===========
Diluted $(0.12) $0.15
=========== ===========
(a) Dilutive loss per common share for the three months ended October
5, 2005 would have been anti-dilutive if the number of weighted
average shares outstanding were adjusted to reflect the dilutive
effect of outstanding stock options.
POMEROY IT SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands,except earnings per share data) Nine Months Ended
-----------------------
October 5, October 5,
2005 2004
----------- -----------
(Unaudited) (Unaudited)
Net sales and service revenues:
Sales - equipment, supplies and leasing $375,617 $407,724
Service 167,241 126,149
----------- -----------
Total net sales and service revenues 542,858 533,873
----------- -----------
Cost of sales and service:
Sales - equipment, supplies and leasing 347,438 377,638
Service 124,941 91,685
----------- -----------
Total cost of sales and service 472,379 469,323
----------- -----------
Gross profit 70,479 64,550
----------- -----------
Operating expenses:
Selling, general and administrative 56,861 44,570
Rent expense 2,556 2,451
Depreciation 3,624 2,968
Amortization 624 201
Provision for doubtful accounts 2,000 -
Restructuring and severance charges 1,794 2,423
----------- -----------
Total operating expenses 67,459 52,613
----------- -----------
Income from operations 3,020 11,937
----------- -----------
Other expense:
Interest, net 579 1
Other 5 27
----------- -----------
Total other expense 584 28
----------- -----------
Income before income tax 2,436 11,909
Income tax expense 986 4,675
----------- -----------
Net income $1,450 $7,234
=========== ===========
Weighted average shares outstanding:
Basic 12,542 12,243
=========== ===========
Diluted 12,652 12,419
=========== ===========
Earnings per common share:
Basic $0.12 $0.59
=========== ===========
Diluted $0.11 $0.58
=========== ===========
POMEROY IT SOLUTIONS, INC.
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands,except earnings per share data) Three Months Ended
-------------------------
As Reported Proforma(1)
October 5, October 5,
2005 2005
------------ -----------
(Unaudited) (Unaudited)
Net sales and service revenues:
Sales - equipment, supplies and leasing $129,281 $129,281
Service 55,720 55,720
------------ -----------
Total net sales and service revenues 185,001 185,001
------------ -----------
Cost of sales and service:
Sales - equipment, supplies and leasing 120,058 120,058
Service 42,427 42,427
------------ -----------
Total cost of sales and service 162,485 162,485
------------ -----------
Gross profit 22,516 22,516
------------ -----------
Operating expenses:
Selling, general and administrative 19,005 19,005
Rent expense 830 830
Depreciation 1,187 1,187
Amortization 164 164
Provision for doubtful accounts 2,000 -
Restructuring and severance charges 1,662 -
------------ -----------
Total operating expenses 24,848 21,186
------------ -----------
Income (loss) from operations (2,332) 1,330
------------ -----------
Other expense:
Interest, net 152 152
Other 4 4
------------ -----------
Total other expense 156 156
------------ -----------
Income (loss) before income tax (2,488) 1,174
Income tax expense (benefit) (1,008) 475
------------ -----------
Net income (loss) $(1,480) $699
============ ===========
Weighted average shares outstanding:
Basic 12,583 12,583
============ ===========
Diluted 12,583 12,660
============ ===========
Earnings (loss) per common share:
Basic $(0.12) $0.06
============ ===========
Diluted $(0.12) $0.06
============ ===========
(1) Excludes provision for doubtful accounts, restructuring and
severance charges
POMEROY IT SOLUTIONS, INC.
PROFORMA CONSOLIDATED STATEMENTS OF INCOME
(in thousands,except earnings per share data) Nine Months Ended
------------------------
As Reported Proforma(1)
October 5, October 5,
2005 2005
----------- -----------
(Unaudited) (Unaudited)
Net sales and service revenues:
Sales - equipment, supplies and leasing $375,617 $375,617
Service 167,241 167,241
----------- -----------
Total net sales and service revenues 542,858 542,858
----------- -----------
Cost of sales and service:
Sales - equipment, supplies and leasing 347,438 347,438
Service 124,941 124,941
----------- -----------
Total cost of sales and service 472,379 472,379
----------- -----------
Gross profit 70,479 70,479
----------- -----------
Operating expenses:
Selling, general and administrative 56,861 56,861
Rent expense 2,556 2,556
Depreciation 3,624 3,624
Amortization 624 624
Provision for doubtful accounts 2,000 -
Restructuring and severance charges 1,794 -
----------- -----------
Total operating expenses 67,459 63,665
----------- -----------
Income from operations 3,020 6,814
----------- -----------
Other expense:
Interest, net 579 579
Other 5 5
----------- -----------
Total other expense 584 584
----------- -----------
Income before income tax 2,436 6,230
Income tax expense 986 2,523
----------- -----------
Net income $1,450 $3,707
=========== ===========
Weighted average shares outstanding:
Basic 12,542 12,542
=========== ===========
Diluted 12,652 12,652
=========== ===========
Earnings per common share:
Basic $0.12 $0.30
=========== ===========
Diluted $0.11 $0.29
=========== ===========
(1) Excludes provision for doubtful accounts, restructuring and
severance charges.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion