8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

Current Report

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):

AUGUST 15, 2003

ANALYTICAL SURVEYS, INC.

(Exact name of registrant as specified in its charter)

COLORADO	84-0846389
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)

11900 CROWNPOINT DRIVE, SAN ANTONIO, TEXAS 78233

(Address of principal executive offices)

(210) 657-1500

(Registrant’s telephone number, including area code)

(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT:: NOT APPLICABLE

Item 5. OTHER EVENTS

See Exhibit 99 to this Form 8-K.

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 hereunto duly authorized.

Item 7. FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

99.1 Press Release - Analytical Surveys Reports Third Quarter Results

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 hereunto duly authorized.

	Analytical Surveys, Inc. (Registrant)
Date: August 15, 2003	/s/ Lori A. Jones
	Lori A. Jones Chief Financial Officer

EX-99.1

EXHIBIT 99.1

[ASI LOGO]	PRESS
	RELEASE

Contacts: Analytical Surveys, Inc. J. Norman Rokosh Chief Executive Officer nrokosh@anlt.com Pfeiffer High Public Relations, Inc. Geoff High 303/393-7044 geoff@pfeifferhigh.com

ANALYTICAL SURVEYS REPORTS THIRD QUARTER RESULTS

SAN ANTONIO, Texas – August 14, 2003 – Analytical Surveys, Inc. (Nasdaq SmallCap Market-ANLT), a provider of customized data conversion and digital mapping services for the geographic information systems (GIS) and related spatial data markets, today announced financial results for its third fiscal quarter and nine months ended June 30, 2003.

Third quarter revenues totaled $3.8 million compared with $4.3 million for the third quarter of 2002. The Company reported a third quarter net loss available to common shareholders of $623,000, or $.76 per diluted share, versus net earnings of $1,447,000, or $.91 per diluted share, for the comparable three-month period in 2002. The results of the prior year’s quarter included a gain on extinguishment of debt totaling $2.1 million.

Revenue for the nine months ended June 30, 2003, totaled $11.7 million compared with $14.9 million for the comparable period in 2002. Net loss available to common shareholders totaled $2.3 million, or $2.78 per diluted share as compared with net earnings of $5.6 million, or $5.60 per diluted share, for the same period in 2002. The 2002 results included a gain from the extinguishment of debt totaling $11.7 million and a write-off of goodwill of $3.6 million, as well as a $1.2 million income tax benefit.

The results for the Company’s third quarter and nine-month period include non-cash charges of $174,000 and $568,000, respectively, for the accretion of discount and dividends on preferred stock, plus severance charges of $307,000 in the nine-month period. The results for the comparable periods in 2002 included non-cash charges of $220,000 and $340,000 for the accretion of discount and dividends on preferred stock.

The Company reported a third quarter loss from operations of $444,000 compared with a loss from operations of $537,000 for the same period last year. Loss from operations for the nine-month period totaled $1.7 million as compared with $3.3 million for the nine-month period in 2002.

Management attributed the decline in third quarter revenues to decreased demand in the GIS market and continued weakness in the overall technology sector. The Company ended the

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quarter with an order backlog of $10.9 million versus a backlog of $16.1 million at the end of the comparable period last year.

Norman Rokosh, president and CEO, said, “Our core customers in the utility industry – primarily electric, gas and telephone utilities – have generally been experiencing smaller budgets for technology spending, and our reduced revenue level is a direct reflection of this trend. We have been successful in controlling our costs with lower near-term revenue, and will continue to ensure that our cost base is in line with our anticipated company size.”

Rokosh added, “We continue to pursue opportunities in the data outsourcing services sector to diversify revenue while utilizing the core GIS skills and abilities of our work force. We believe that our value proposition for data outsourcing, highlighted by anticipated cost savings to the utility of 15% to 30% compared to in-house costs, will be an attractive option in this environment of smaller technology budgets.”

Analytical Surveys Inc. (ASI) provides technology-enabled solutions and expert services for geospatial data management, including data capture and conversion, planning, implementation, distribution strategies and maintenance services. Through its affiliates, ASI has played a leading role in the geospatial industry for more than 40 years. The Company is dedicated to providing utilities and governmental agencies with responsive, proactive solutions that maximize the value of information and technology assets. ASI is headquartered in San Antonio, Texas and maintains facilities in Indianapolis, Indiana and Waukesha, Wisconsin. For more information, visit www.anlt.com.

This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words “anticipate,” “believe,” “estimate,” “intend” and “expect” and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding the Company’s strategy, future sales, future expenses and future liquidity and capital resources. All forward-looking statements in this press release are based upon information available to the Company on the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. The Company’s actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in Item 1. Business—”risk factors” and elsewhere in the Company’s Annual Report on Form 10-K. All numbers quoted in this press release are approximate.

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ANALYTICAL SURVEYS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

	June 30, 2003			September 30, 2002
	(Unaudited)
ASSETS
Current assets:
Cash	$	2,148		3,114
Accounts receivable, net of allowance for doubtful accounts of $100 and $479		2,741		2,444
Revenue in excess of billings		6,659		8,915
Prepaid expenses and other		71		184
Total current assets		11,619		14,657
Equipment and leasehold improvements, at cost		5,630		7,047
Less accumulated depreciation and amortization		(5,032	)	(6,201	)
Net equipment and leasehold improvements		598		846
Total assets	$	12,217		15,503
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	73		270
Billings in excess of revenue		529		887
Accounts payable and other accrued liabilities		1,838		2,214
Accrued payroll and related benefits		1,017		1,576
Total current liabilities		3,457		4,947
Long-term debt, less current portion		1,955		1,960
Total liabilities		5,412		6,907
Redeemable preferred stock; no par value. Authorized 2,500 shares; 1,600 shares issued and outstanding at June 30 and September 30 (liquidation value $1,920 and $1,600 respectively)		1,300		800
Stockholders’ equity:
Common stock; no par value. Authorized 10,000 shares; 824 shares issued and outstanding at June 30 and September 30		33,039		33,039
Accumulated deficit		(27,534	)	(25,243	)
Total stockholders’ equity		5,505		7,796
Total liabilities and stockholders’ equity	$	12,217		15,503

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ANALYTICAL SURVEYS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,					Nine Months Ended   June 30,
	2003			2002		2003		2002
Revenues	$	3,753		4,304		11,710		14,907
Costs and expenses
Salaries, wages and related benefits		2,112		2,795		7,110		10,427
Subcontractor costs		1,049		835		2,123		2,721
Other general and administrative		923		1,003		3,446		4,300
Depreciation and amortization		113		208		388		754
Severance and related costs		—		—		307		—
		4,197		4,841		13,374		18,202
Loss from operations		(444	)	(537	)	(1,664	)	(3,295	)
Other income (expense)
Interest expense, net		(45	)	(38	)	(138	)	(264	)
Other		26		117		79		139
Gain on extinguishment of debt		—		2,125		—		11,708
		(19	)	2,204		(59	)	11,583
Income (loss) before income taxes		(463	)	1,667		(1,723	)	8,288
Income tax expense (benefit)		(14	)	—		—		1,240
Earnings (loss) before cumulative effect of a change in accounting principle		(449	)	1,667		(1,723	)	9,528
Cumulative effect of a change in accounting principle		—		—		—		(3,557	)
Net earnings (loss)		(449	)	1,667		(1,723	)	5,971
Accretion of discount and dividends on preferred shares		(174	)	(220	)	(568	)	(340	)
Net earnings (loss) available to common shareholders	$	(623	)	1,447		(2,291	)	5,631
Basic earnings (loss) per common share:
Income (loss) before cumulative effect of a change in accounting principle	$	(0.76	)	1.96		(2.78	)	12.76
Cumulative effect of a change in accounting principle	$	—		—		—		(4.94	)
Net earnings (loss) available to common shareholder	$	(0.76	)	1.96		(2.78	)	7.82
Diluted earnings (loss) per common share:
Income (loss) before cumulative effect of a change in accounting principle	$	(0.76	)	0.91		(2.78	)	9.13
Cumulative effect of a change in accounting principle	$	—		—		—		3.53
Net earnings (loss) available to common shareholder	$	(0.76	)	0.91		(2.78	)	5.60
Weighted average common shares:
Basic		824		739		824		720
Diluted		824		1,594		824		1,005