EX-99 2 c57881ex99.txt PRESS RELEASE ISSUED AUGUST 15, 2000 1 EXHIBIT 99 August 15, 2000 Analytical Surveys, Inc. Pfeiffer Public Relations, Inc. Michael Renninger Geoff High Chief Financial Officer 303/393-7044 mrenninger@anlt.com geoff@pfeifferpr.com ANALYTICAL SURVEYS REPORTS THIRD QUARTER AND NINE-MONTH RESULTS INDIANAPOLIS, Indiana -- Analytical Surveys, Inc., (ASI) (Nasdaq National Market-ANLT), a provider of customized data conversion and digital mapping services for the geographic information systems (GIS) market, today announced results for its third quarter and nine-month period ended June 30, 2000. Third quarter sales were $20.0 million as compared with $31.2 million in the third quarter last year. The Company reported a net loss of $9.5 million, or $1.36 per diluted share, versus net income of $2.0 million, or 28 cents per diluted share, in last year's third quarter. Through nine months, ASI reported gross sales of $62.3 million versus sales of $88.6 million during the comparable period a year ago. Net loss was $15.5 million, or $2.26 per diluted share, versus net income of $4.8 million, or 67 cents per diluted share at the nine-month mark last year. Management said the reduction in ASI's top-line results was partially attributable to the decline in contract volume experienced during the second half of fiscal 1999 and the second quarter of fiscal 2000. That decline was believed to be the result of consolidation within the utility industry, Y2K computer concerns, increased competition from companies with offshore operations and most recently, customer concerns about the Company's financial situation. As of June 30, 2000, backlog was $63.4 million as compared with $92.0 million as of June 30, 1999. The Company's on-going detailed review of open projects resulted in increases in the estimated cost-to-complete in a significant number of contracts. For the three months ended June 30, 2000, the resulting reduction of sales was $8.3 million and has been accounted for as a change in estimate based on refinements of the estimating process of changing conditions and new developments. Contract cost-to-complete adjustments totaling $1.6 million for the three months ended June 30, 1999 represent errors identified in the Company's restatement of fiscal 1999 results. Management said that while it had previously announced that ASI might restate previously reported financial figures, further analysis indicates these adjustments should be incorporated in the current quarter. Shortly after the close of the third quarter, ASI announced it had named Norman Rokosh as the Company's new president and CEO. Rokosh joined ASI with a background in the GIS industry, as well as considerable experience in leading corporate turnarounds and restructuring efforts. Continued on Page 2 2 Page 2 of 6 "We are finalizing our plans for corporate recovery initiatives. Our plan is to implement these initiatives as soon as possible. We are pleased with the support we have received from our employees, corporate lending team and investment banker," Rokosh said. "Also, our finance team has completed the transition to a new Company-wide financial accounting system. This system will greatly assist us in closely monitoring our financial performance in the future." In June, ASI announced it had retained Brean Murray and Co. as its investment banker. The firm, which has helped orchestrate a number of transactions within the GIS industry, is exploring possible strategic partnerships and private equity financing options as well as potential buyer or merger partners. Earlier this month, ASI also announced its Senior Lenders had extended to September 30, 2000, a Waiver Agreement related to the Company's bank credit facility. The previous Waiver Agreement was due to expire on July 31, 2000. ASI management will be holding a conference call this afternoon, August 15, 2000, at 4:30 p.m. Eastern. The dial-in number is (719) 457-2645. Participants should call in at least 10 minutes prior to the conference start time to ensure prompt access to the conference. Participants will be asked to provide their name and company name. At the beginning of the conference, they will also be instructed on how to participate in the question and answer period. The call will also be simulcast and rebroadcast over the Internet at HTTP://WWW.VCALL.COM. Analytical Surveys, Inc. is an industry leader in providing customized data conversion, digital mapping and consulting services for the spatial data markets. Geospatial data is used for a variety of applications, including the creation of geographic information systems (GIS). A GIS is a high-resolution, large-scale, richly detailed "intelligent map" that allows users to input, update, query, analyze and display detailed information about a geographic area. Geographic information systems are widely used by utilities, state and local governments, federal agencies and commercial businesses to manage massive infrastructures effectively, to improve operating efficiencies and to analyze future demand for facilities. The Company's traditional markets have been utilities and state and local governments. Certain statements made in this press release are forward looking statements within the meaning of the Private Securities Litigation Act of 1995. Results may differ materially from the Company's expectations. A number of uncertainties and other factors could cause actual results to differ materially from such forward looking statement, including, but not limited to, the possibility that certain transactions cited herein may not be completed. A more detailed description of factors that could affect the Company's financial results are included in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Continued on Page 3 3 Page 3 of 6 FINANCIAL RECAP (In thousands, except per share data) CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED JUNE 30, JUNE 30, 1999 2000 1999 2000 -------- -------- -------- -------- Gross Sales 31,167 19,958 88,563 62,344 Contract cost-to-complete adjustments (1,639) (8,250) (4,980) (15,838) -------- -------- -------- -------- Net Sales $ 29,528 11,708 83,583 46,506 -------- -------- -------- -------- Costs and expenses Salaries, wages and related benefits 14,965 10,118 43,927 35,662 Subcontractor costs 4,507 5,724 11,886 11,441 Other general and administrative 4,594 3,424 13,495 11,339 Depreciation and amortization 1,484 1,501 4,229 3,982 Restructuring costs -- -- -- 1,755 -------- -------- -------- -------- 25,550 20,767 73,537 64,179 -------- -------- -------- -------- Earnings (loss) from operations 3,978 (9,059) 10,046 (17,673) -------- -------- -------- -------- Other (income) expense Interest expense, net 677 588 2,065 1,699 Other (70) (153) (230) (244) -------- -------- -------- -------- 607 435 1,835 1,455 -------- -------- -------- -------- Earnings (loss) before income taxes and extraordinary loss 3,371 (9,494) 8,211 (19,128) Income tax expense (benefit) 1,369 -- 3,428 (3,617) -------- -------- -------- -------- Earnings (loss) before 2,002 (9,494) 4,783 (15,511) extraordinary loss Extraordinary loss on extinguishment of debt, net of tax -- -- -- 209 -------- -------- -------- -------- Net earnings (loss) 2,002 (9,494) 4,783 (15,720) Other comprehensive loss -- (336) -- (5) -------- -------- -------- -------- Comprehensive income (loss) $ 2,002 (9,830) 4,783 (15,725) ======== ======== ======== ========
Continued on Page 4 4 Page 4 of 6 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED JUNE 30, JUNE 30, 1999 2000 1999 2000 ---- ---- ---- ---- Basic earnings (loss) per common share: Earnings (loss) before extraordinary loss $ 0.29 (1.36) 0.71 (2.23) Extraordinary loss $ -- -- -- .03 Net earnings (loss) $ 0.29 (1.36) 0.71 (2.26) Diluted earnings (loss) per common share: Earnings (loss) before extraordinary loss $ 0.28 (1.36) 0.67 (2.23) Extraordinary loss $ -- -- -- .03 Net earnings (loss) $ 0.28 (1.36) 0.67 (2.26) Weighted average common shares: Basic 6,917 6,974 6,739 6,960 ======= ======= ======= ======= Diluted 7,191 7,040 7,128 7,058 ======= ======= ======= =======
See accompanying notes to consolidated financial statements. Continued on Page 5 5 Page 5 of 6 CONSOLIDATED BALANCE SHEETS (Unaudited)
SEPT. 30, JUNE 30, 1999 2000 ---- ---- ASSETS Current assets: Cash $ 6,659 551 Accounts receivable, net of allowance for doubtful accounts of $138 and $433 15,074 15,691 Revenue in excess of billings 30,898 22,703 Deferred income taxes 402 440 Income taxes receivable 4,085 3,764 Prepaid expenses and other 1,066 414 --------- -------- Total current assets 58,184 43,563 Equipment and leasehold improvements, as cost: Equipment 13,916 15,124 Furniture and fixtures 1,581 1,658 Leasehold improvements 1,076 1,085 --------- -------- 16,573 17,867 Less accumulated depreciation and amortization (8,740) (11,076) --------- -------- 7,833 6,791 Investment securities 537 532 Deferred income taxes 590 1,819 Goodwill, net of accumulated amortization of $3,174 and $4,485 22,098 20,801 --------- -------- Total assets $ 89,242 73,506 ========= ========
Continued on Page 6 6 Page 6 of 6 CONSOLIDATED BALANCE SHEETS (Unaudited)
SEPT. 30, JUNE 30, 1999 2000 ---- ---- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Line of credit $ -- 4,450 Bank term loan 4,900 16,150 Current portion of long-term debt 2,365 2,512 Billings in excess of revenue 2,008 1,748 Accounts payable and other accrued liabilities 5,063 8,239 Accrued payroll and related benefits 3,819 3,534 ------- ------- Total current liabilities 18,155 36,633 Long-term debt, less current portion 20,339 1,690 Deferred compensation payable 85 85 ------- ------- Total liabilities 38,579 38,408 ------- ------- Stockholders' equity: Preferred stock; no par value. Authorized 2,500 shares; none issued or outstanding -- -- Common stock; no par value. Authorized 100,000 shares; 6,948 and 6,974 issued and outstanding at September 30, 1999 and June 30, 2000 respectively 32,080 32,240 Accumulated other comprehensive income - unrealized gain (loss) on investment securities -- (5) Retained earnings 18,583 2,863 ------- ------- Total stockholders' equity 50,663 35,098 ------- ------- Total liabilities and stockholders' equity $89,242 73,506 ======= =======
See accompanying notes to consolidated financial statements. ###