EX-99.1 CHARTER 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1
EXHIBIT 99.1
 
 
 
MEDIA CONTACT:
Jeff Baker
Bill Bartkowski
President
Managing Director
Analysts International
BlueFire Partners
Phone: (952) 835-5900
Phone: (612) 344-1012
jbaker@analysts.com
bartkowski@bluefirepartners.com


Analysts International Reports Profitable Results for
2004 Third Quarter

Company Reports Fourth Consecutive Quarter of Profitability Improvement;
EPS Higher Than Previous Guidance

MINNEAPOLIS, October 26, 2004—Analysts International (NASDAQ: ANLY) today reported the results for its third quarter ended October 2, 2004. Revenues totaled $86.4 million for the quarter, compared to $80.0 million for the comparable quarter a year ago. For the quarter, the Company reported $1.3 million of net income, or $0.05 per share, compared to a net loss of $(559,000), or $(.02) per share, for the third quarter of 2003. The quarter’s results are higher than the Company’s previous guidance with respect to earnings per share.
For the nine months ended October 2, 2004, the Company reported revenues of $258.6 million, compared to $248.7 million for the first three quarters of 2003. The net profit for the period was $2.4 million, or $.10 per share, compared to a net loss of $(1.0) million in 2003, or $(.04) per share.
Jeff Baker, Company president, said, "We are pleased to report our third consecutive quarter of profitability, as well as year-over-year revenue growth. Our business lines continue to strengthen and show signs of improvement, reflecting the hard work and dedication of our employees and management. We look forward to further profitability and growth in the periods ahead."
Baker noted the Company would provide guidance for the fourth quarter of 2004 on the conference call scheduled for later today.
Analysts will host a conference call today at 9:30 a.m. (CDT) to discuss these results. Interested parties may access the call by dialing 888-244-0473 a few minutes before the scheduled start and ask for the Analysts International call and leader Jeff Baker, or visit the Company's Website at http://www.analysts.com to link to a live Webcast. A replay of the call will be available on the Company's Website and an encore will be available through November 3, 2004 by calling 800-642-1687 or 706-645-9291 and using the Conference ID number: 1064604.


 
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About Analysts International
Headquartered in Minneapolis, Analysts International is a diversified IT services company. In business since 1966, the company has sales and customer support offices in the United States and Canada. Lines of business include Full Service Staffing, which provides high demand resources for supporting a client's IT staffing needs; Business Solutions Services, which provides business solutions and network infrastructure services; and Outsourcing Services, which provides onshore and offshore strategic solutions. The company partners with best-in-class IT organizations, allowing access to a wide range of expertise, resources and expansive geographical reach. For more information, visit http://www.analysts.com.

Statements contained herein, which are not strictly historical fact, are forward-looking statements. Words such as "believes," "intends," "possible," "expects," "estimates," "anticipates," or "plans" and similar expressions are intended to identify forward-looking statements. Any forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on the Company’s current expectations relating to future revenues, earnings, results of operations and future sales or growth. The Company’s actual results may vary materially from those projected due to certain risks and uncertainties such as the general state of the economy, volume of business activity, continued need for our services by current and prospective clients, client cancellations, the Company’s ability to control and improve profit margins, including our ability to control operating costs and hourly rates for our services, the availability and utilization of qualified technical personnel and other similar factors. For more information concerning risks and uncertainties to the Company’s business refer to the discussion in the "Market Condition, Business Outlook and Risks to Our Business" section in the Company’s Annual Report for the year ending January 3, 2004, and the Company’s prior Annual Reports, 10-Ks, 10-Qs, other Securities and Exchange Commission filings and investor relations materials.

(Tables follow)

 
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Analysts International Corporation
Consolidated Statements of Operations
(Unaudited)




   
Three Months Ended
  
Nine Months Ended
  
   
October 2,
  
September 27,
  
October 2,
  
September 27,
  
(in thousands except per share amounts)
  
2004
  
2003
  
2004
  
2003
  
                   
Professional services revenue:
                 
Provided directly
  
$
72,040
  
$
69,432
  
$
215,193
  
$
210,510
  
Provided through subsuppliers
    
14,340
    
10,604
    
43,446
    
38,177
  
Total revenue
    
86,380
    
80,036
    
258,639
    
248,687
  
Expenses:
                          
Salaries, contracted services and direct charges
    
69,995
    
65,406
    
210,453
    
203,601
  
Selling, administrative and other operating costs
    
14,910
    
15,035
    
45,150
    
45,662
  
Amortization of intangible assets
    
193
    
193
    
580
    
580
  
                           
Operating income (loss)
    
1,282
    
(598
)
  
2,456
    
(1,156
)
Non-operating income
    
9
    
39
    
17
    
64
  
Interest expense
    
(7
)
  
--
    
(29
)
  
(8
)
                           
Income (loss) before income taxes
    
1,284
    
(559
)
  
2,444
    
(1,100
)
Income tax expense (benefit)
    
--
    
--
    
--
    
(57
)
                           
Net income (loss)
  
$
1,284
  
$
(559
)
$
2,444
  
$
(1,043
)
                           
Per common share:
                          
Basic income (loss)
  
$
.05
  
$
(.02
)
$
.10
  
$
(.04
)
Diluted income (loss)
  
$
.05
  
$
(.02
)
$
.10
  
$
(.04
)
                           
Average common shares outstanding
    
24,212
    
24,199
    
24,212
    
24,199
  
Average common and common equivalent shares outstanding
    
24,468
    
24,199
    
24,317
    
24,199
  
 


(more)

 
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Analysts International Corporation
Consolidated Balance Sheets

           
(In thousands)
  
October 2, 2004
  
January 3, 2004
  
   
(Unaudited)
      
Assets
          
           
Current assets:
          
Cash and cash equivalents
  
$
3,541
  
$
4,499
  
Accounts receivable, less allowance for doubtful accounts
    
61,914
    
55,623
  
Other current assets
    
4,281
    
4,737
  
Total current assets
    
69,736
    
64,859
  
               
Property and equipment, net
    
5,892
    
6,297
  
Other assets
    
30,499
    
30,739
  
               
   
$
106,127
  
$
101,895
  
               
Liabilities and Shareholders’ Equity
              
               
Current liabilities:
              
Accounts payable
  
$
17,814
  
$
15,825
  
Salaries and vacations
    
6,997
    
7,774
  
Deferred revenue
    
2,838
    
2,766
  
Self-insured health care reserves and other amounts
    
3,072
    
2,829
  
Total current liabilities
   
30,721
    
29,194
  
               
Non-current liabilities, primarily deferred compensation
    
4,258
    
4,038
  
Shareholders’ equity
    
71,148
    
68,663
  
               
   
$
106,127
  
$
101,895
  

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