EX-99.1 3 a04-2884_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 4th Quarter

 

Quarterly Revenue Above Earlier Estimates; Continued Emphasis Placed on
Enhancing Efficiency and Positioning for Future Growth and Profitability

 

MINNEAPOLIS, February 26, 2004 - Analysts International (NASDAQ: ANLY) today reported the results for its fourth quarter ended January 3, 2004.  Revenues totaled $83.2 million for the quarter, higher than the Company’s original guidance. This figure compares to $93.3 million for the comparable quarter a year ago. The net loss for the quarter of $481,000 or $(0.02) on a diluted earnings per share basis, compares to a net loss of $81,000 or essentially breakeven on a diluted earnings per share basis, for the fourth quarter a year ago. As management noted earlier this month, operating results were approximately $0.02 per share below guidance due in large part to costs associated with organizational changes focused on reducing future operating costs.

 

For the twelve months ended January 3, 2004, the Company reported revenues of $331.9 million, compared with $426.2 million last year. Year to date the Company reported a loss of $1,524,000 or $(0.06) per share, compared to a loss of $21.0 million or $(0.87) per share for the comparable period a year ago. The comparable period last year includes a $16.4 million, or $(0.68) per share, charge to write-off goodwill upon the adoption of SFAS No. 142, Accounting for Goodwill and Other Intangibles.

 

Fourth quarter revenues were comprised of $70.8 million in direct revenue and $12.4 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 January 3, 2004 was 44% business solutions and 56% staffing.

 

 

Michael LaVelle, president and chief executive officer, said, “During the quarter we launched important new initiatives; we view these initiatives as key investments in improving our future profitability and expanding our market share.

 

“As the result of the solid progress we achieved in 2003 in building key strategic alliances, streamlining our organization and controlling expenses, we are now positioned to capitalize on the apparent stabilization of the IT services market,” LaVelle said. “In addition, our offshore services capability, including both new internal resources and key global strategic alliances, has strong momentum to become the profitable and growing business that we envision. With new channel partners that are helping us to extend our brand and market reach, and with a strong and talented internal organization, we are excited about our readiness to increase market share in 2004 and for the long term.

 

“By embracing the sweeping changes that have occurred in our industry over the past four years, and by confidently launching strategies that capitalize on those changes, it is our belief that we are today better equipped to achieve profitable growth in the years ahead,” LaVelle said.

 

LaVelle noted the Company would provide guidance for the first quarter of 2004 on the conference call scheduled for later today.

 

Analysts will host a conference call today at 9:30 a.m. (CST) to discuss these results. Interested parties may access the call via the Internet at www.analysts.com or may dial 888-397-6435 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 more than 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. 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)

 

 

Analysts International Corporation

Consolidated Statements of Operations

 

 

 

Three Months Ended

 

Twelve Months Ended

 

(in thousands except per share amounts)

 

January 3,
2004

 

December 28,
2002

 

January 3,
2004

 

December 28,
2002

 

Professional services revenue:

 

 

 

 

 

 

 

 

 

Provided directly

 

$

70,846

 

$

74,794

 

$

281,356

 

$

327,582

 

Provided through subsuppliers

 

12,366

 

18,524

 

50,543

 

98,578

 

Total revenue

 

83,212

 

93,318

 

331,899

 

426,160

 

Expenses:

 

 

 

 

 

 

 

 

 

Salaries, contracted services and direct charges

 

67,604

 

77,314

 

271,205

 

353,715

 

Selling, administrative and other operating costs

 

15,849

 

15,707

 

61,511

 

73,694

 

Amortization of intangible assets

 

193

 

193

 

773

 

785

 

Loss on sale of corporate headquarters building

 

—

 

—

 

—

 

1,860

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

(434

)

104

 

(1,590

)

(3,894

)

Loss on investment

 

—

 

(190

)

—

 

(190

)

Non-operating income

 

15

 

3

 

79

 

122

 

Interest expense

 

(5

)

(45

)

(13

)

(1,042

)

Loss on debt extinguishment

 

—

 

—

 

—

 

(744

)

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

 

(424

)

(128

)

(1,524

)

(5,748

)

Income tax (benefit)

 

57

 

(47

)

——

 

(1,106

)

Net loss before cumulative effect of change in accounting principle

 

(481

)

(81

)

(1,524

)

(4,642

)

Cumulative effect of change in accounting for goodwill

 

—

 

—

 

—

 

(16,389

)

Net loss

 

$

(481

)

$

(81

)

$

(1,524

)

$

(21,031

)

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

Basic loss:

 

 

 

 

 

 

 

 

 

Loss before cumulative effect of change in accounting principle

 

$

(.02

)

$

(.00

)

$

(.06

)

$

(.19

)

Cumulative effect of change in accounting for goodwill

 

—

 

—

 

—

 

(.68

)

Basic loss:

 

$

(.02

)

$

(.00

)

$

(.06

)

$

(.87

)

 

 

 

 

 

 

 

 

 

 

Diluted loss:

 

 

 

 

 

 

 

 

 

Loss before cumulative effect of change in accounting principle

 

$

(.02

)

$

(.00

)

$

(.06

)

$

(.19

)

Cumulative effect of change in accounting for goodwill

 

—

 

—

 

—

 

(.68

)

Diluted loss:

 

$

(.02

)

$

(.00

)

$

(.06

)

$

(.87

)

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding

 

24,210

 

24,199

 

24,201

 

24,198

 

Average common and common equivalent shares outstanding

 

24,210

 

24,199

 

24,201

 

24,198

 

 

(more)

 

 

Analysts International Corporation

Consolidated Balance Sheets

 

(In thousands)

 

January 3, 2004

 

December 28, 2002

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

4,499

 

$

54

 

Accounts receivable, less allowance for doubtful accounts

 

55,623

 

59,776

 

Other current assets

 

4,737

 

8,848

 

Total current assets

 

64,859

 

68,678

 

Property and equipment, net

 

6,297

 

7,071

 

Other assets

 

30,739

 

30,995

 

 

 

$

101,895

 

$

106,744

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

15,825

 

$

18,966

 

Line of Credit

 

—

 

324

 

Salaries and vacations

 

7,774

 

6,036

 

Self-insured health care reserves and other amounts

 

2,829

 

3,307

 

Deferred revenue

 

2,766

 

4,340

 

Total current liabilities

 

29,194

 

32,973

 

Long-term liabilities

 

4,038

 

3,605

 

Shareholders’ equity

 

68,663

 

70,166

 

 

 

$

101,895

 

$

106,744