EX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1
EXHIBIT 99.1
 
Analysts International Corporation Logo
 
 


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 First Quarter 2006
Quarter’s EPS Are at the High End of Recent Guidelines


MINNEAPOLIS — May 4, 2006— Analysts International (NASDAQ: ANLY) reported the results for its quarter ended April 1, 2006. Revenues totaled $86.8 million for the quarter, compared to $79.1 million for the comparable quarter a year ago and $85.9 million for the fourth quarter. For the quarter, the Company reported $254,000 of net income, or $.01 per diluted share, compared to a net loss of $706,000 or $(.03) per share, for the first quarter of 2005. The quarter’s results are at the high end of the Company’s guidance with respect to earnings per share.
 
Analysts will host a conference call today at 9:30 a.m. (CDT) to discuss these results in detail and answer questions participants may have. Interested parties may access the call by dialing 1-877-241-6895 or 1-973-339-3086 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 p.m. CT on May 4, 2006 until 10:59 p.m. on May 18, 2006, by calling 1-877-519-4471 and using access code 7298981. The Company will also file an 8-K with the Securities and Exchange Commission that will provide a full transcript of the call.




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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; 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)
 

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Analysts International Corporation
Consolidated Statements of Operations
(Unaudited)


 
Three Months Ended
(in thousands except per share amounts)
 
April 1,
2006
 
April 2,
2005
         
Professional services revenue:
       
    Provided directly
$
65,459
$
66,050
    Provided through subsuppliers
 
14,077
 
7,597
    Product sales
 
7,305
 
5,452
      Total revenue
 
86,841
 
79,099
         
Expenses:
       
    Salaries, contracted services and direct charges
 
65,196
 
59,067
    Cost of product sales
 
6,444
 
5,107
    Selling, administrative and other operating costs
 
14,492
 
15,454
    Amortization of intangible assets
 
253
 
193
         
Operating income (loss)
 
456
 
(722)
         
Non-operating income
 
4
 
21
Interest expense
 
(193)
 
(5)
         
Income (loss) before income taxes
 
267
 
(706)
         
Income tax expense
 
13
 
--
         
Net income (loss)
$
254
$
(706)
         
Per common share:
       
Basic income (loss)
$
.01
$
(.03)
Diluted income (loss)
$
.01
$
(.03)
         
Average common shares outstanding
 
24,611
 
24,316
 
Average common and common equivalent shares outstanding
 
 
25,086
 
 
24,316


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Analysts International Corporation
Consolidated Balance Sheets



(in thousands)
 
April 1,
2006
 
December 31,
2005
   
(unaudited)
   
Assets
       
         
    Current assets:
       
    Cash and cash equivalents
$
137
$
64
    Accounts receivable, less allowance for doubtful accounts
 
70,327
 
66,968
    Other current assets
 
3,179
 
2,383
      Total current assets
 
73,643
 
69,415
         
Property and equipment, net
 
3,771
 
4,056
Other assets
 
28,138
 
28,533
 
$
105,552
$
102,004
         
Liabilities and Shareholders’ Equity
       
         
Current liabilities
       
    Accounts payable
$
26,331
$
24,581
    Salaries and vacations
 
5,133
 
8,260
    Line of credit
 
10,492
 
5,000
    Deferred revenue
 
1,464
 
1,645
    Restructuring accrual, current portion
 
875
 
971
    Self-insured health care reserves and other amounts
 
2,159
 
2,776
      Total current liabilities
 
46,454
 
43,233
         
Non-current liabilities, primarily deferred compensation
 
1,996
 
1,878
Restructuring accrual - non-current
 
408
 
581
Shareholders’ equity
 
56,694
 
56,312
 
$
105,552
$
102,004
         


4


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


 
Three Months Ended
   
April 1, 2006
 
April 2, 2005
         
         
Net income (loss) as reported
$
254
$
(706)
         
Depreciation
 
608
 
693
Amortization
 
253
 
193
Net interest expense (income)
 
189
 
(16)
Income tax expense
 
13
 
--
         
Adjusted EBITDA*
$
1,317
$
164


*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 are adjusted from results based on GAAP to exclude certain items. 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.


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