EX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1
EXHIBIT 99.1
 


Media Contacts:
  
Jeff Baker
Bill Bartkowski
President and CEO
Partner
Analysts International
MeritViewPartners
Phone: (952) 835-5900
Phone: (612) 605-8616
jpbaker@analysts.com
bartkowski@meritviewpartners.com


Analysts International Reports Results for Third Quarter 2006

MINNEAPOLIS — October 26, 2006— Analysts International (NASDAQ: ANLY) reported its financial results for the three and nine-month periods ended September 30, 2006. Revenues totaled $85.5 million for the third quarter, compared to $78.2 million for the comparable quarter a year ago and $87.9 million for the second quarter. These results are consistent with the preliminary results the Company announced on October 16, 2006 and below the Company’s previously issued third quarter guidance of $88 million to $90 million of revenue. For the quarter, the Company reported a net loss of $(522,000), or $(.02) per diluted share, compared to a net loss of $(15.6) million or $(.63) per diluted share for the third quarter of 2005, which included $13.3 million or $(.54) per diluted share of special charges.

For the nine months ended September 30, 2006, the Company reported revenues of $260.2 million compared to $236.4 million for the comparable period last year. The net loss for the period was $(526,000), or $(.02) per diluted share, compared to a net loss of $(18.7) million, or $(.76) per diluted share for the comparable period of 2005, including merger-related costs and other special charges totaling $14.9 million or $(.61) per diluted share.
 
Analysts will host a conference call today at 9:30 a.m. CT to discuss these results in detail and answer questions participants may have. Interested parties may access the call by dialing 1-888-694-4767 or 1-973-582-2751 for international participants a few minutes before the scheduled start and ask for the Analysts International conference call moderated by Company President and CEO, Jeff Baker. The call may also be accessed via the internet at www.analysts.com, where it will be archived. Interested parties can also hear a replay of the call from 11:30 a.m. CT on October 26, 2006 until 10:59 p.m. CT on November 2, 2006, by calling 1-877-519-4471 and using access code 7959349. The Company will also file an 8-K with the Securities and Exchange Commission that will provide a full transcript of the prepared remarks delivered on the call.


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; Solutions Services, which provides business solutions and network infrastructure services; Managed IT Services and Government 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 www.analysts.com.

(Financials follow)
 


Analysts International Corporation
Consolidated Statements of Operations
(unaudited)

   
Three Months Ended
  
Nine Months Ended
  
(in thousands except per share amounts)
    
September 30,
2006
    
October 1,
2005
    
September 30, 2006
    
October 1,
2005
  
                           
Revenue:
                          
Provided directly
  
$
65,655
  
$
65,042
  
$
196,969
  
$
197,359
  
Provided through subsuppliers
    
12,470
    
7,757
    
40,194
    
22,874
  
Product sales
    
7,355
    
5,445
    
23,064
    
16,214
  
Total revenue
    
85,480
    
78,244
    
260,227
    
236,447
  
                           
Expenses:
                          
Salaries, contracted services and direct charges
    
64,333
    
59,261
    
195,443
    
177,220
  
Cost of product sales
    
6,450
    
4,820
    
20,202
    
14,731
  
Selling, administrative and other operating costs
    
14,876
    
16,031
    
44,200
    
47,395
  
Merger related costs
    
(83
)
  
1,225
    
(327
)
  
2,113
  
Restructuring and other severance related costs
    
(39
)
  
3,161
    
(54
)
  
3,904
  
Asset write-off
    
--
    
1,817
    
--
    
1,817
  
Goodwill impairment
    
--
    
7,050
    
--
    
7,050
  
Amortization of intangible assets
    
266
    
342
    
786
    
729
  
                           
Operating loss
    
(323
)
  
(15,463
)
  
(23
)
  
(18,512
)
Non-operating income
    
5
    
4
    
114
    
26
  
Interest expense
    
194
    
125
    
586
    
179
  
                           
Loss before income taxes
    
(512
)
  
(15,584
)
  
(495
)
  
(18,665
)
Income tax expense
    
10
    
--
    
31
    
--
  
Net loss
 
$
(522
)
$
(15,584
)
$
(526
)
$
(18,665
)
                           
Per common share:
                          
Basic loss
  
$
(.02
)
$
(.63
)
$
(.02
)
$
(.76
)
Diluted loss
  
$
(.02
)
$
(.63
)
$
(.02
)
$
(.76
)
                           
Average common shares outstanding
    
24,662
    
24,565
    
24,631
    
24,462
  
Average common and common equivalent shares outstanding
    
24,662
    
24,565
    
24,631
    
24,462
  



Analysts International Corporation
Consolidated Balance Sheets
 
   
(in thousands)
  
September 30,
2006
(unaudited)
  
December 31,
2005
 
  
Assets
          
           
Current assets:
              
Cash and cash equivalents
  
$
143
  
$
64
  
Accounts receivable, less allowance for doubtful accounts
    
71,566
    
66,968
  
Other current assets
    
2,347
    
2,383
  
Total current assets
    
74,056
    
69,415
  
               
Property and equipment, net
   
3,413
    
4,056
  
Intangible assets
    
11,512
    
12,298
  
Goodwill
    
11,799
    
11,799
  
Other assets
    
3,628
    
4,436
  
Total assets
  
$
104,408
  
$
102,004
  
               
Liabilities and Shareholders’ Equity
              
               
Current liabilities:
              
Accounts payable
  
$
23,295
  
$
24,581
  
Salaries and vacations
    
5,679
    
8,260
  
Line of credit
    
11,422
    
5,000
  
Deferred revenue
    
1,078
    
1,645
  
Restructuring accrual, current portion
    
535
    
971
  
Self-insured health care reserves and other amounts
    
3,591
    
2,242
  
Deferred compensation
    
172
    
534
  
Total current liabilities
    
45,772
    
43,233
  
               
Non-current liabilities:
              
Deferred compensation
    
2,274
    
1,878
  
Restructuring accrual
    
203
    
581
  
               
Shareholders’ equity
    
56,159
    
56,312
  
   
$
104,408
  
$
102,004
  



Analysts International Corporation
Reconciliation of non-GAAP Financial Measures
(in thousands)
 
   
Three Months Ended
  
Nine Months Ended
  
   
September 30,
2006
  
October 1,
2005
  
September 30,
2006
  
October 1,
2005
  
                   
Net loss as reported
  
$
(522
)
$
(15,584
)
$
(526
)
$
(18,665
)
                           
Plus:
                          
Depreciation
    
629
    
699
    
1,809
    
2,084
  
Amortization
    
266
    
342
    
786
    
729
  
Interest expense
    
194
    
125
    
586
    
179
  
Merger related costs
    
(83
)
  
1,225
    
(327
)
  
2,113
  
Restructuring and severance related costs
    
(39
)
  
3,161
    
(54
)
  
3,904
  
Asset write-off
    
--
    
1,817
    
--
    
1,817
  
Goodwill impairment
    
--
    
7,050
    
--
    
7,050
  
Income tax expense
    
10
    
--
    
31
    
--
  
                           
Less:
                          
Interest income
    
(5
)
  
(4
)
  
(15
)
  
(26
)
                           
Adjusted EBITDA*
  
$
450
  
$
(1,169
)
$
2,290
  
$
(815
)


*To supplement our consolidated financial statements presented in accordance with GAAP, we use the non-GAAP financial measure of Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) which is adjusted from results based on GAAP to exclude certain items. We have excluded the special costs associated with our attempted merger with Computer Horizons, our restructuring and severance-related costs, asset write-off, and goodwill impairment to provide a meaningful comparison between current results and prior reported results. This non-GAAP financial measure is provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. This measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The non-GAAP financial measure included in this press release has been reconciled to the nearest GAAP measure.
 
# # #