-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, aKL90bLXZV++YXVznme4Cz4bnfOanEAkSXkZB+DVtco16CMXeqNbWP3uJ/LOBYxh AIGujzhju0tdGNwaEVI9CQ== 0000912057-95-003877.txt : 19950516 0000912057-95-003877.hdr.sgml : 19950516 ACCESSION NUMBER: 0000912057-95-003877 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANALYSTS INTERNATIONAL CORP CENTRAL INDEX KEY: 0000006292 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 410905498 STATE OF INCORPORATION: MN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-04090 FILM NUMBER: 95539824 BUSINESS ADDRESS: STREET 1: 7615 METRO BLVD CITY: MINNEAPOLIS STATE: MN ZIP: 55439 BUSINESS PHONE: 6128974506 MAIL ADDRESS: STREET 1: 7615 METRO BLVD CITY: MINNEAPOLIS STATE: MN ZIP: 55439 10-Q 1 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ___________ Quarterly Report Under Section 13 or 15(d) of The Securities Exchange Act of 1934 ___________ For the quarter ended: Commission file number: March 31, 1995 0-4090 ___________ ANALYSTS INTERNATIONAL CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Minnesota 41-0905408 (STATE OF INCORPORATION) (I.R.S. EMPLOYER IDENTIFICATION NO.) 7615 Metro Boulevard Minneapolis, MN 55439 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) Telephone Number: (612) 835-5900 ___________ Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes X No ------ ----- ___________ As of April 28, 1995, 7,243,700 shares of the Registrant's Common Stock were outstanding. ANALYSTS INTERNATIONAL CORPORATION INDEX Page Number PART I. FINANCIAL INFORMATION: Item 1. Condensed Consolidated Balance Sheets March 31, 1995 (Unaudited) and June 30, 1994 1 Condensed Consolidated Statements of Income Three and nine months ended March 31, 1995 and 1994 (Unaudited) 2 Condensed Consolidated Statements of Cash Flows Nine months ended March 31, 1995 and 1994 (Unaudited) 3 Notes to Condensed Consolidated Financial Statements (Unaudited) 4 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5-6 ANALYSTS INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS
March 31, June 30, (In thousands) 1995 1994 - -------------- --------- -------- (Unaudited) Current assets: Cash and cash equivalents $ 13,565 $ 10,700 Accounts receivable, less allowance for doubtful accounts 32,946 28,293 Other current assets 2,346 2,326 -------- -------- Total currents assets 48,857 41,319 Property and equipment, net 4,692 4,912 Other assets 5,311 4,979 -------- -------- $ 58,860 $ 51,210 -------- -------- -------- -------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,153 $ 1,691 Salaries and vacations 6,387 5,302 Income taxes payable 451 490 Other, primarily self-insured health care reserves 2,197 2,363 ------- ------- Total current liabilities 11,188 9,846 Long-term liabilities 5,149 4,793 Shareholders' equity (Note 2) 42,523 36,571 ------- ------- $58,860 $51,210 ------- ------- ------- ------- Note: The balance sheet at June 30, 1994 has been taken from the audited financial statements at that date, and condensed.
See notes to condensed consolidated financial statements. 1 ANALYSTS INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands Three Months Ended Nine Months Ended except per share amounts) March 31 March 31 - ------------------------- ------------------- ------------------ 1995 1994 1995 1994 ---- ---- ---- ---- Revenues $ 55,220 $ 45,052 $154,334 $129,648 Expenses: Salaries, contracted services and direct charges 39,140 32,543 109,145 92,058 Selling, administrative and other operating costs 11,572 9,840 32,680 28,750 ------- ------- -------- -------- 50,712 42,383 141,825 120,808 ------- ------- -------- -------- Operating income 4,508 2,669 12,509 8,840 Other income 226 95 485 271 ------- ------- -------- -------- Income before income taxes 4,734 2,764 12,994 9,111 Income taxes (Note 3) 1,867 1,050 5,087 3,431 ------- ------- -------- -------- Net income $ 2,867 $ 1,714 $ 7,907 $ 5,680 ------- ------- -------- -------- ------- ------- -------- -------- PER COMMON SHARE: Net income $ .39 $ .24 $ 1.09 $ .79 ------- ------- -------- -------- ------- ------- -------- -------- Dividends paid $ .13 $ .12 $ .38 $ .34 ------- ------- -------- -------- ------- ------- -------- -------- Average common and common equivalent shares outstanding 7,297,000 7,199,000 7,249,000 7,218,000 --------- --------- --------- --------- --------- --------- --------- ---------
See notes to condensed consolidated financial statements. 2 ANALYSTS INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended March 31, ----------------- (Dollars in thousands) 1995 1994 - ---------------------- ---- ---- Net cash provided by operating activities $ 6,024 $ 4,217 Cash flows from investing activities: Property and equipment additions (1,094) (976) Increase in annuities and cash surrender values (197) (282) -------- ------- Net cash used in investing activities (1,291) (1,258) Cash flows from financing activities: Cash dividends (2,727) (2,411) Proceeds from exercise of stock options 859 318 -------- ------- Net cash used in financing activities (1,868) (2,093) -------- ------- Net change in cash and equivalents 2,865 866 Cash and equivalents at beginning of period 10,700 9,914 -------- -------- Cash and equivalents at end of period $ 13,565 $ 10,780 -------- -------- -------- --------
See notes to condensed consolidated financial statements. 3 ANALYSTS INTERNATIONAL CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Condensed Consolidated Financial Statements - The condensed consolidated balance sheet as of March 31, 1995, the condensed consolidated statements of income for the three month and nine month periods ended March 31, 1995 and 1994 and the condensed consolidated statements of cash flows for the nine month periods then ended have been prepared by the Company, without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and the cash flows at March 31, 1995 and for the periods then ended have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's June 30, 1994 annual report to shareholders. Effective July 1, 1994, the Company adopted Statements of Financial Accounting Standards No. 112, "Employers Accounting for Postemployment Benefits" and No. 115, "Accounting for Certain Investments in Debt and Equity Securities". The impact on the Company's financial position and results of operations as a consequence of adopting these statements is not significant. 2. SHAREHOLDERS' EQUITY
Nine Months Ended March 31, 1995 ----------------- (In thousands) Balance at beginning of period $ 36,571 Cash dividends declared: August 18, 1994 at $.13 per share (933) December 15, 1994 at $.13 per share (935) February 24, 1995 at $.13 per share (946) Proceeds upon exercise of stock options 859 Net income 7,907 -------- Balance at end of period $ 42,523 -------- --------
3. INCOME TAXES Effective July 1, 1993 the Company adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes", which requires the asset and liability method of computing deferred taxes. The impact on the Company's financial position and results of operations as a consequence of adopting the new method was a reduction in income taxes of approximately $110,000 in the nine month period ending March 31, 1994. 4 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Nine Months Ended March 31, 1995 and 1994 CHANGES IN FINANCIAL CONDITION The increases in working capital and current ratios between June 30, 1994 and March 31, 1995 has resulted from the Company's ability to maintain its base of business and to finance its growth without the use of borrowed capital. The increase in accounts receivable at March 31, 1995 compared to June 30, 1994 reflects the increase in revenue volume during that period. On February 24, 1995 the Board of Directors declared a regular quarterly dividend of $.13 per share payable May 15, 1995 to shareholders of record on May 1, 1995. The Company believes funds generated from its business and current cash balances are adequate to meet demands placed upon its resources by the Company's operations and the payment of regular quarterly dividends. 5 RESULTS OF OPERATIONS Revenues for the nine months ended March 31, 1995 and for the quarter then ended increased 19.0% and 22.6% , respectively, over the same periods a year ago. These revenue increases resulted almost entirely from increases in billable hours of service rendered to clients. Rate increases have not contributed significantly to the revenue increases because prevailing competitive conditions in the industry have made it difficult for the Company to increase the hourly rates it charges for services. Personnel totalled 2,950 at March 31, 1995, compared to 2,550 at March 31, 1994 an increase of 15.7%. Substantially all of the increase consists of billable technical staff. Salaries, contracted services and direct charges, which represent primarily the Company's direct labor cost, were 70.7% of revenues for the nine months ended March 31, 1995 compared to 71.0% for the same period a year ago. These costs for the quarters ended March 31, 1995 and 1994 were 70.9% and 72.2%, respectively. By comparison, this cost item was 71.7% of revenues for the quarter ended June 30, 1994. Labor costs were higher as a percentage of revenue during the last two quarters of fiscal 1994 primarily because increased labor costs were not entirely passed on to customers and the rates charged for certain services to the Company's major customer were reduced effective January 1, 1994. The Company expects to encounter future rate pressures from its major customer but cannot predict what impact, if any, such pressures will have on operations or when such impact will be felt. While the Company has succeeded in reducing labor costs as a percentage of revenues for the most recent nine months to the levels experienced prior to January 1, 1994, there can be no assurance the Company will be able to maintain or improve this level because intense competition for business can adversely affect rate increases and competition for technical personnel makes it difficult to control labor costs. Selling, administrative and other operating costs, which include commissions, employee fringe benefits and location costs, represented 21.2% of revenues for the nine months ended March 31, 1995 compared to 22.2% for the same period a year ago. For the quarter ended March 31, 1995 these costs were 21.0% compared to 21.8% for the same quarter last year. These costs, as a percentage of revenue, have decreased as a result of the Company's ability to maintain its basic administrative structure and to control related costs. While the Company has been successful in controlling selling, administrative and other operating costs and is committed to careful cost management, there can be no assurance the Company will be able to maintain these costs at their current relationship to revenues. The reduction of the effective tax rate for the nine months ended March 31, 1994 was caused by the adoption of SFAS No. 109 "Accounting for Income Taxes". The adoption of the statement resulted in a one time reduction in income taxes of approximately $110,000. 6 PART II. OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibit 11 - Computation of Net Income Per Share. (b) There were no reports on Form 8-K filed for the nine months ended March 31, 1995. 7 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned there unto duly authorized. ANALYSTS INTERNATIONAL CORPORATION ---------------------------------- (Registrant) Date May 12, 1995 By /s/ Gerald M. McGrath ------------------- ------------------------------- Gerald M. McGrath Vice President Finance and Treasurer Date May 12, 1995 By /s/ Marti R. Charpentier ------------------- ------------------------------- Marti R. Charpentier Controller and Assistant Treasurer (Chief Accounting Officer) 8 EXHIBIT INDEX
Exhibit Number Exhibit Page No.* - -------------- ------- --------- 11 Computation of Net Income Per Share 13 * Page numbers in the sequential numbering system of the manually signed original report.
9 EX-11 2 EXHIBIT 11 EXHIBIT NO. 11 ANALYSTS INTERNATIONAL CORPORATION COMPUTATION OF NET INCOME PER SHARE
(IN THOUSANDS EXCEPT Three Months Ended Nine Months Ended PER SHARE AMOUNTS) March 31 March 31 ------------------ ----------------- 1995 1994 1995 1994 ---- ---- ---- ---- PRIMARY: Weighted average number of common shares outstanding 7,228 7,110 7,174 7,091 Dilutive stock options after application of treasury stock method 69 89 75 127 ------ ------ ------ ------ Weighted average number of common and common equivalent shares outstanding 7,297 7,199 7,249 7,218 ------ ------ ------ ------ ------ ------ ------ ------ Net income $2,867 $1,714 $7,907 $5,680 ------ ------ ------ ------ ------ ------ ------ ------ Per share amount $ .39 $ .24 $ 1.09 $ .79 ------ ------ ------ ------ ------ ------ ------ ------ FULLY DILUTED: Weighted average number of common shares outstanding 7,228 7,110 7,174 7,091 Dilutive stock options based on the treasury stock method using the end of the period market price, if higher than average market price 94 103 96 135 ------ ------ ----- ----- Weighted average number of common and common equivalent shares outstanding 7,322 7,213 7,270 7,226 ------ ------ ------ ------ ------ ------ ------ ------ Net income $2,867 $1,714 $7,907 $5,680 ------ ------ ------ ------ ------ ------ ------ ------ Per share amount $ .39 $ .24 $ 1.09 $ .79 ------- ------ ------ ------ ------- ------ ------ ------
10 EX-27 3 EXHIBIT 27
5 1,000 9-MOS JUN-30-1995 JUL-01-1994 MAR-31-1995 13,565 0 32,946 0 0 48,857 5,311 0 58,860 11,188 5,149 724 0 0 41,799 58,860 154,334 154,334 109,145 109,145 32,680 0 0 12,994 5,087 5,087 0 0 0 7,907 1.09 1.09
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