EX-99.1 3 a03-4306_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

 

FOR IMMEDIATE RELEASE

 

Media Contacts:

 

 

Michael LaVelle

 

Bill Bartkowski

Chief Executive Officer

 

Managing Director

Analysts International

 

BlueFire Partners

Phone: 952-835-5900

 

Phone 612-344-1012

mlavelle@analysts.com

 

bartkowski@bluefirepartners.com

 

Analysts International Reports Results for 2003 3rd Quarter

 

Management Actions Undertaken to Capitalize on Market Conditions

 

MINNEAPOLIS, October 22, 2003 — Analysts International (Nasdaq: ANLY) today reported the results for its third quarter ended September 27, 2003. Revenues totaled $80.0 million for the quarter, compared to $107.4 million for the comparable quarter a year ago. The net loss for the quarter of $559,000 or $(.02), on a diluted earnings per share basis, compares to a net loss of $683,000 or $(.03), on a diluted earnings per share basis, for the third quarter a year ago.

 

For the nine months ended September 27, 2003, the Company reported revenues of $248.7 million, compared with $332.8 million last year. Year to date the Company reported a loss of $1,043,000 or $(.04) per share, compared to a loss of $21.0 million or $(.87) per share for the same period a year ago. The comparable period last year includes a $16.4 million charge to write-off goodwill, or $(.68) per share, upon the adoption of SFAS No. 142, Accounting for Goodwill and Other Intangibles.

 

Third quarter revenues were comprised of $69.4 million in direct revenue and $10.6 million in subsupplier billings that are processed through the Company as specified in contracts with certain customers. The mix of revenues during the quarter ended September 27, 2003 was 44% business solutions and 56% staffing.

 

Michael LaVelle, president and chief executive officer, stated, “While we were disappointed that we were unable to report a profit for the quarter, we implemented strategic decisions to bring on additional sales and recruiting talent and reposition our field management

 

 

team while continuing to invest in new service offerings. Had we not undertaken these initiatives, our operations would have been profitable this quarter. However we believe these actions will produce greater efficiency and profit potential in future quarters.”

 

LaVelle also stated, “We are seeing a pickup in IT demand, but rates remain extremely competitive. For the second consecutive quarter, headcounts for technical staff increased over the previous quarter. Our technical staff headcounts at the end of the quarter have finally increased over their levels at year end, an important indicator for us.”

 

LaVelle noted the Company would provide guidance for its fourth quarter 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 via the Internet at www.analysts.com or dial 888-397-6437 a few minutes before the scheduled start and ask for the Analysts International call and leader Mike LaVelle. No advanced registration is required to participate. A replay of the call will be available at www.analysts.com.

 

About Analysts International

 

Headquartered in Minneapolis, Analysts International is a diversified IT services company. In business for 37 years, the company has sales and customer support offices in the United States and Canada. Lines of business include the Sequoia Services Group, which provides business solutions and network infrastructure services; Managed Services Group, which provides a comprehensive range of outsourced business functions; and IT Supplemental Resources, which provides high demand resources for supporting a client’s IT staffing needs. In 2001, ComputerWorld named Analysts one of the best 100 places for IT professionals to work, and Microsoft Corporation named the company its worldwide winner of the top IT Infrastructure Solution. 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 December 28, 2002, and the Company’s prior Annual Reports, 10-Ks, 10-Qs, other Securities and Exchange Commission filings and investor relations materials.

 

(Tables follow)

 

2

 

Analysts International Corporation

Consolidated Statements of Operations

(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

(in thousands except per share amounts)

 

September 27,
2003

 

September 30,
2002

 

September 27,
2003

 

September 30,
2002

 

Professional services revenue:

 

 

 

 

 

 

 

 

 

Provided directly

 

$

69,432

 

$

85,245

 

$

210,510

 

$

252,788

 

Provided through subsuppliers

 

10,604

 

22,169

 

38,177

 

80,054

 

Total revenue

 

80,036

 

107,414

 

248,687

 

332,842

 

Expenses:

 

 

 

 

 

 

 

 

 

Salaries, contracted services and direct charges

 

65,406

 

88,715

 

203,601

 

276,401

 

Selling, administrative and other operating costs

 

15,035

 

19,380

 

45,662

 

57,988

 

Amortization of intangible assets

 

193

 

193

 

580

 

591

 

Loss on sale of corporate headquarters building

 

—

 

—

 

—

 

1,860

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(598

)

(874

)

(1,156

)

(3,998

)

Non-operating income

 

39

 

53

 

64

 

119

 

Interest expense

 

—

 

(86

)

(8

)

(997

)

Loss on debt extinguishment

 

—

 

—

 

—

 

(744

)

Loss before income taxes and cumulative effect of change in accounting principle

 

(559

)

(907

)

(1,100

)

(5,620

)

Income tax benefit

 

—

 

(224

)

(57

)

(1,059

)

Net loss before cumulative effect of change in accounting principle

 

(559

)

(683

)

(1,043

)

(4,561

)

Cumulative effect of change in accounting for goodwill

 

—

 

—

 

—

 

(16,389

)

Net loss

 

$

(559

)

$

(683

)

$

(1,043

)

$

(20,950

)

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

Basic loss:

 

 

 

 

 

 

 

 

 

Loss before cumulative effect of change in accounting principle

 

$

(.02

)

$

(.03

)

$

(.04

)

$

(.19

)

Cumulative effect of change in accounting for goodwill

 

—

 

—

 

—

 

(.68

)

Basic loss:

 

$

(.02

)

$

(.03

)

$

(.04

)

$

(.87

)

 

 

 

 

 

 

 

 

 

 

Diluted loss:

 

 

 

 

 

 

 

 

 

Loss before cumulative effect of change in accounting principle

 

$

(.02

)

$

(.03

)

$

(.04

)

$

(.19

)

Cumulative effect of change in accounting for goodwill

 

—

 

—

 

—

 

(.68

)

Diluted loss:

 

$

(.02

)

$

(.03

)

$

(.04

)

$

(.87

)

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding

 

24,199

 

24,198

 

24,199

 

24,197

 

Average common and common equivalent shares outstanding

 

24,199

 

24,198

 

24,199

 

24,197

 

 

(more)

 

3

 

Analysts International Corporation

Consolidated Balance Sheets

 

(In thousands)

 

September 27,
2003

 

December 28, 2002

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

8,114

 

$

54

 

Accounts receivable, less allowance for doubtful accounts

 

54,517

 

59,776

 

Other current assets

 

4,352

 

8,848

 

Total current assets

 

66,983

 

68,678

 

Property and equipment, net

 

6,559

 

7,071

 

Other assets

 

30,105

 

30,995

 

 

 

$

103,647

 

$

106,744

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

13,080

 

$

18,966

 

Line of Credit

 

—

 

324

 

Salaries and vacations

 

11,148

 

6,036

 

Self-insured health care reserves and other amounts

 

2,748

 

2,659

 

Deferred revenue

 

3,355

 

4,340

 

Restructuring accruals – current portion

 

403

 

648

 

Total current liabilities

 

30,734

 

32,973

 

Long-term liabilities

 

3,790

 

3,605

 

Shareholders’ equity

 

69,123

 

70,166

 

 

 

$

103,647

 

$

106,744

 

 

# # # #

 

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