EX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1
EXHIBIT 99.1
 
 
 
Contact:
Adam Friedman
Principal
Adam Friedman Associates LLC
Phone: 212-981-2529 Ext. 18


Analysts International Reports Results for 2006

MINNEAPOLIS — February 27, 2007— Analysts International (NASDAQ: ANLY) today reported the results for its fourth quarter ended December 30, 2006. Revenues totaled $86.8 million for the quarter, compared to $85.9 million for the comparable quarter a year ago. For the quarter, the Company reported a net loss of $(534,000), or $(.02) per diluted share, compared to net income of $1.0 million or $.04 per diluted share for the fourth quarter of 2005.

For the twelve months ended December 30, 2006, the Company reported revenues of $347.0 million compared to $322.3 million in fiscal year 2005. The net loss for the year was $(1.1) million, or $(.04) per diluted share, compared to a net loss of $(17.7) million in 2005, or $(.72) per diluted share. The twelve months ended December 31, 2005 includes merger-related costs and other special charges totaling $14.9 million or $(.61) per diluted share. Excluding these charges, the Company lost $(2.8) million or $(.11) per diluted share for the year ended December 31, 2005.
 
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 1-800-418-7236 or 1-973-935-8757 for international participants a few minutes before the scheduled start and ask for the Analysts International conference call moderated by Company President and CEO, Mike LaVelle. 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 February 27, 2007 until 10:59 p.m. CT on March 6, 2007, by calling 1-877-519-4471 and using access code 8386150. 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
  
Twelve Months Ended
  
(in thousands except per share amounts)
  
December 30,
2006
  
December 31,
2005
  
December 30,
2006
  
December 31,
2005
  
                   
Professional Services Revenue:
                          
Provided directly
  
$
64,520
  
$
65,762
  
$
261,489
  
$
263,121
  
Provided through subsuppliers
    
14,708
    
11,556
    
54,902
    
34,431
  
Product sales
    
7,532
    
8,532
    
30,596
    
24,746
  
Total revenue
    
86,760
    
85,850
    
346,987
    
322,298
  
                           
Expenses:
                          
Salaries, contracted services and direct charges
    
65,176
    
62,880
    
260,619
    
240,100
  
Cost of product sales
    
6,947
    
7,819
    
27,149
    
22,550
  
Selling, administrative and other operating costs
    
14,746
    
13,657
    
58,847
    
61,053
  
Amortization of intangible assets
    
267
    
253
    
1,053
    
982
  
Restructuring and other severance related costs
    
3
    
10
    
(51
)
  
3,914
  
Loss on asset disposal
    
--
    
8
    
--
    
1,825
  
Goodwill impairment
    
--
    
--
    
--
    
7,050
  
Merger related expenses
    
--
    
16
    
(327
)
  
2,129
  
                           
Operating (loss) income
    
(379
)
  
1,207
    
(303
)
  
(17,305
)
Non-operating income
    
5
    
24
    
20
    
50
  
Interest expense
    
150
    
215
    
736
    
394
  
                           
(Loss) income before income taxes
    
(524
)
  
1,016
    
(1,019
)
  
(17,649
)
Income tax expense
    
10
    
50
    
41
    
50
  
Net (loss) gain
 
$
(534
)
$
966
  
$
(1,060
)
$
(17,699
)
                           
Per common share:
                          
Basic (loss) gain
  
$
(.02
)
$
.04
  
$
(.04
)
$
(.72
)
Diluted (loss) gain
  
$
(.02
)
$
.04
  
$
(.04
)
$
(.72
)
                           
Average common shares outstanding
    
24,688
    
24,597
    
24,645
    
24,495
  
Average common and common equivalent shares outstanding
    
24,688
    
24,826
    
24,645
    
24,495
  



Analysts International Corporation
Consolidated Balance Sheets



   
(in thousands)
  
December 30,
2006
(unaudited)
  
December 31,
2005
 
  
Assets
          
           
Current assets:
              
Cash and cash equivalents
  
$
179
  
$
64
  
Accounts receivable, less allowance for doubtful accounts
    
64,196
    
66,968
  
Other current assets
    
2,484
    
2,383
  
Total current assets
    
66,859
    
69,415
  
               
Property and equipment, net
   
2,925
    
4,056
  
Other assets
    
26,447
    
28,533
  
Total assets
  
$
96,231
  
$
102,004
  
               
Liabilities and Shareholders’ Equity
              
               
Current liabilities:
              
Accounts payable
  
$
24,411
  
$
24,581
  
Salaries and vacations
    
7,416
    
8,260
  
Line of credit
    
2,661
    
5,000
  
Deferred revenue
    
1,267
    
1,645
  
Restructuring accrual, current portion
    
385
    
971
  
Self-insured health care reserves and other amounts
    
1,670
    
2,242
  
Deferred compensation
    
208
    
534
  
Total current liabilities
    
38,018
    
43,233
  
               
Non-current liabilities:
              
Deferred compensation
    
2,319
    
1,878
  
Restructuring accrual
    
160
    
581
  
               
Shareholders’ equity
    
55,734
    
56,312
  
   
$
96,231
  
$
102,004
  
               



Analysts International Corporation
Reconciliation of non-GAAP Financial Measures
(in thousands)


   
Three Months Ended
  
Twelve Months Ended
  
   
December 30,
2006
  
December 31, 2005
  
December 30, 2006
  
December 31, 2005
  
                   
Net (loss) income as reported
  
$
(534
)
$
966
  
$
(1,060
)
$
(17,699
)
                           
Plus:
                          
Merger related costs
    
--
    
16
    
(327
)
  
2,129
  
Restructuring and severance related costs
    
3
    
10
    
(51
)
  
3,914
  
Asset write-off
    
--
    
8
    
--
    
1,825
  
Goodwill impairment
    
--
    
--
    
--
    
7,050
  
                           
Total special charges
    
3
    
34
    
(378
)
  
14,918
  
                           
(Loss) income before special charges
    
(531
)
  
1,000
    
(1,438
)
  
(2,781
)
                           
Depreciation
    
602
    
679
    
2,411
    
2,763
  
Amortization
    
267
    
253
    
1,053
    
982
  
Net interest expense (income)
    
145
    
191
    
716
    
344
  
Income tax expense
    
10
    
50
    
41
    
50
  
                           
Adjusted EBITDA*
  
$
493
  
$
2,173
  
$
2,783
  
$
1,358
  


*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.

# # #