EX-99.1 2 a06-5631_1ex99d1.htm PRESS RELEASE DATED FEBRUARY 23, 2006, ENTITLED "ANALYSTS INTERNATIONAL REPORTS RESULTS FOR 2005"

EXHIBIT 99.1

 

 

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 2005

Quarter’s EPS Are at the High End of Recent Guidance

 

MINNEAPOLIS, February 23, 2006 - Analysts International Corporation (NASDAQ: ANLY) today reported the results for its fourth quarter ended December 31, 2005. Revenues totaled $85.9 million for the quarter, compared to $83.0 million for the comparable quarter a year ago and $78.2 million for the third quarter. For the quarter, the Company reported $1.0 million of net income, or $.04 per diluted share, compared to net income of $1.4 million or $.06 per share, for the fourth quarter of 2004. The quarter’s results are at the high end of the Company’s January 24, 2006 guidance with respect to earnings per share.

 

For the twelve months ended December 31, 2005, the Company reported revenues of $322.3 million, compared to $341.6 million in fiscal year 2004. The net loss for the period was $(17.7) million, or $(.72) per diluted share, compared to net income of $3.9 million in 2004, or $.16 per 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. (CST) 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 February 23, 2006 to 10:59 a.m. CT on March 9, 2006, by calling 1-877-519-4471 and using access code 7033822. The Company will also file an 8-K with the Securities and Exchange Commission that will provide 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; Business Solutions Services, which provides business solutions and network infrastructure services; and Outsourcing Services, which provides onshore and offshore strategic 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 http://www.analysts.com.

 

Cautionary Statement for the Purpose of Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995

 

This Press Release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” or similar expressions. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. Such forward-looking statements are based upon current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Statements made in this Press Release by the Company and its President, Jeffrey Baker regarding:  (i) increases in business activity and opportunity, including with IBM and another national client; (ii) continued development of its next generation staffing model (New Equities); (iii) growth of the Company’s IP telephony practice; (iv) the expected benefits from the Company’s reorganization and cost reduction actions; and (v) the Company’s anticipated growth in revenue and return to profitability are forward looking statements. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which Analysts expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (i) the risk that Analysts’ reorganization and cost reduction actions will not produce revenue growth and profitability; (ii) the risk that Analysts will lose one or more contracts that adversely impact its growth and profitability; (iii) Analysts’ reorganization adversely affects its competitiveness in the marketplace; and (iv) other economic, business, competitive and/or regulatory factors affecting Analysts’ business generally, including those set forth in Analysts’ filings with the SEC, including its Annual Report on Form 10-K for its most recent fiscal year, especially in the Management’s Discussion and Analysis section, its most recent Quarterly Report on Form 10-Q and its Current Reports on Form 8-K. All forward-looking statements included in this Press Release are based on information available to Analysts on the date of the press release.  Analysts undertakes no obligation (and expressly disclaims any such obligation) to update forward-looking statements made in this transcript to reflect events or circumstances after the date of this press release or to update reasons why actual results would differ from those anticipated in such forward-looking statements.

 

(Financials follow)

 

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Analysts International Corporation

Consolidated Statements of Operations

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December
31,

 

January 1,

 

December
31,

 

January 1,

 

(in thousands except per share amounts)

 

2005

 

2005

 

2005

 

2005

 

 

 

 

 

 

 

 

 

 

 

Professional services revenue:

 

 

 

 

 

 

 

 

 

Provided directly

 

$

65,762

 

$

66,400

 

$

263,121

 

$

269,610

 

Provided through subsuppliers

 

11,556

 

12,360

 

34,431

 

55,806

 

Product sales

 

8,532

 

4,213

 

24,746

 

16,196

 

Total revenue

 

85,850

 

82,973

 

322,298

 

341,612

 

Expenses:

 

 

 

 

 

 

 

 

 

Salaries, contracted services and direct charges

 

62,880

 

61,640

 

240,100

 

261,005

 

Cost of product sales

 

7,819

 

3,876

 

22,550

 

14,964

 

Selling, administrative and other operating costs

 

13,657

 

15,865

 

61,053

 

61,015

 

Amortization of intangible assets

 

253

 

194

 

982

 

774

 

Restructuring and other severance related costs

 

10

 

 

3,914

 

 

Loss on asset disposal

 

8

 

 

1,825

 

 

Goodwill impairment

 

 

 

 

7,050

 

 

Merger related expenses

 

16

 

 

2,129

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

1,207

 

1,398

 

(17,305

)

3,854

 

 

 

 

 

 

 

 

 

 

 

Non-operating income

 

24

 

22

 

50

 

39

 

Interest expense

 

(215

)

(12

)

(394

)

(41

)

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

1,016

 

1,408

 

(17,649

)

3,852

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

50

 

 

50

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

966

 

$

1,408

 

$

(17,699

)

$

3,852

 

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

Basic income (loss)

 

$

.04

 

$

.06

 

$

(.72

)

$

.16

 

Diluted income (loss)

 

$

.04

 

$

.06

 

$

(.72

)

$

.16

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding

 

24,597

 

24,212

 

24,495

 

24,212

 

Average common and common equivalent shares outstanding

 

24,826

 

24,651

 

24,495

 

24,398

 

 

(more)

 

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Analysts International Corporation

Consolidated Balance Sheets

 

(In thousands)

 

December
31, 2005

 

January 1,
2005

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

64

 

$

7,889

 

Accounts receivable, less allowance for doubtful accounts

 

66,968

 

57,764

 

Other current assets

 

2,383

 

3,208

 

Total current assets

 

69,415

 

68,861

 

 

 

 

 

 

 

Property and equipment, net

 

4,056

 

5,658

 

Other assets

 

28,533

 

31,158

 

 

 

 

 

 

 

 

 

$

102,004

 

$

105,677

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

24,581

 

$

16,366

 

Salaries and vacations

 

8,260

 

8,828

 

Line of credit

 

5,000

 

 

 

Deferred revenue

 

1,645

 

1,658

 

Restructuring accrual, current portion

 

971

 

251

 

Self-insured health care reserves and other amounts

 

2,242

 

1,759

 

Deferred compensation, short term

 

534

 

560

 

Total current liabilities

 

43,233

 

29,422

 

 

 

 

 

 

 

Non-current liabilities, primarily deferred compensation

 

1,878

 

3,570

 

Restructuring accrual — non-current

 

581

 

67

 

Shareholders’ equity

 

56,312

 

72,618

 

 

 

 

 

 

 

 

 

$

102,004

 

$

105,677

 

 

Note:  Certain reclassifications have been made to the audited balance sheet at January 1, 2005 to conform to the December 31, 2005 presentation. Such reclassifications have no effect on previously reported net income (loss) or shareholders’ equity.

 

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Analysts International Corporation

Reconciliation of non-GAAP Financial Measures

(in thousands)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,
2005

 

January 1,
2005

 

December 31,
2005

 

January 1,
2005

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) as reported

 

$

966

 

$

1,408

 

$

(17,699

)

$

3,852

 

 

 

 

 

 

 

 

 

 

 

Plus:

 

 

 

 

 

 

 

 

 

Merger related costs

 

16

 

 

2,129

 

 

Restructuring and other severance related costs

 

10

 

 

3,914

 

 

Asset write-off

 

8

 

 

1,825

 

 

Goodwill impairment

 

 

 

7,050

 

 

 

 

 

 

 

 

 

 

 

 

Total special charges

 

34

 

 

14,918

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before special charges

 

1,000

 

1,408

 

(2,781

)

3,852

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

679

 

730

 

2,763

 

2,918

 

Amortization

 

253

 

194

 

982

 

774

 

Net interest expense (income)

 

191

 

(10

)

344

 

2

 

Income tax expense

 

50

 

 

50

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA*

 

$

2,173

 

$

2,322

 

$

1,358

 

$

7,546

 

 


*To supplement our consolidated financial statements presented in accordance with GAAP, we use the non-GAAP financial measure of Adjusted EBITDA (earnings before special charges, interest, taxes, depreciation and amortization) and Income Before Special Charges which are adjusted from results based on GAAP to exclude certain items. We have excluded the special costs associated with the merger with Computer Horizons, restructuring charges relating to workforce reductions and lease obligations, the write-off of software development costs, and a goodwill impairment in accordance with FAS 142 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.

 

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