-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Suvvi36CGWJpNCv8y3Xc8VarjwUhLbgJnyEO/Kl8nqKB9dSuEvU4u0m5E8X/eiGt x5UZ1WORtabqXFK1KmfJ4g== 0001005150-03-000820.txt : 20030424 0001005150-03-000820.hdr.sgml : 20030424 20030424080854 ACCESSION NUMBER: 0001005150-03-000820 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030423 ITEM INFORMATION: Other events FILED AS OF DATE: 20030424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GTSI CORP CENTRAL INDEX KEY: 0000850483 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE [5045] IRS NUMBER: 541248422 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19394 FILM NUMBER: 03661056 BUSINESS ADDRESS: STREET 1: 3901 STONECROFT BLVD CITY: CHANTILLY STATE: VA ZIP: 20151-0808 BUSINESS PHONE: 703-502-2000 MAIL ADDRESS: STREET 1: 3901 STONECROFT BLVD CITY: CHANTILLY STATE: VA ZIP: 20151-1010 8-K 1 form8k.txt FORM 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): April 23, 2003 GTSI CORP. Incorporated in Delaware Commission File No. 0-19394 I.R.S. Employer Identification No. 54-1248422 3901 Stonecroft Boulevard Chantilly, Virginia 20151-1010 (703) 502-2000 ITEM 5. OTHER EVENT - EARNING RELEASE CHANTILLY, VA. - April 23, 2003 - GTSI(R) Corp (Nasdaq: GTSI), a government information technology solutions leader, today announced financial results for its first quarter ended March 31, 2003 (see attached tables). Sales for the first quarter of 2003 increased to $178.9 million from $176.7 million for the same period last year. Gross margin in the first quarter of 2003 increased to 9.0% of total sales from 8.2% of total sales, with a favorable impact of adopting a new accounting pronouncement partly offset by increased market pressures. Increases in gross margin were offset by greater operating expenses driven by investments in GTSI's sales organization, resulting in a $3.6 million operating loss for the first quarter of 2003 versus an operating loss of $875,000 for the same period last year. The net loss for the first quarter of 2003 was $1.8 million, or $.21 per diluted share, versus net income of $541,000, or $.06 per diluted share, in the first quarter of 2002. Net income for the 2002 first quarter included a $500,000 gain on the sale of equipment leases during the quarter. Dendy Young, Chairman and Chief Executive Officer of GTSI, commented, "We continue to invest in our sales organization, systems and facilities. We anticipate accelerated sales growth in the third and fourth quarters of 2003, which historically have produced more favorable operating results than the first and second quarters due to Government purchasing habits. Also, our Board of Directors approved a plan to invest up to an additional $5 million to re-purchase shares of GTSI common stock under our existing share re-purchase plan." TRENDS FOR FUTURE GROWTH GTSI recognizes several positive long-term business trends, including recent company wins and program launches, which provide for continued anticipation of a sixth consecutive profitable year for the company. COMPANY TRENDS o Won a highly competed three-year state and local government contract with U.S. Communities Purchasing & Finance Agency worth up to an estimated $300 million o Launched the Integrator Solutions Group to assist systems integrators with implementing large, performance-based government contracts o Enhanced Leasing Program to provide additional options for customer financing for large orders MARKET TRENDS o Federal Civilian Agency Budget passed in February 2003 o $78.5 billion War Supplemental passed in April 2003, expected to renew delayed spending on non-war purchases o $58.7 billion Federal IT budget projected for Fiscal Year 2004 (source: Federal Sources, Inc.) SOLID FINANCIAL FOUNDATION Tom Mutryn, GTSI's Senior Vice President and Chief Financial Officer, commented, "Despite a slow first quarter, GTSI's continuing investments and solid financial status position the company to take advantage of anticipated increases in sales and profitability for the remainder of 2003 and into future years. As of March 31, 2003, GTSI's cash position was $5.7 million, we had no long-term debt and our DSO at the end of March was an enviable 40 days." BACKLOG GTSI's total backlog (including shipped but not accepted orders) at March 31, 2003 was $72.2 million versus a total backlog of $91.3 million at the beginning of the quarter. MONTHLY SALES UPDATES To provide investors with current information on the status of its business, GTSI will release sales data on a monthly, year-over-year basis beginning with April 2003 sales. NEW ACCOUNTING PRONOUNCEMENT As of January 1, 2003 GTSI adopted a new accounting pronouncement, Emerging Issues Task Force ("EITF") Issue No. 02-16, "Accounting for Consideration Received from a Vendor by a Customer (Including a Reseller of the Vendor's Products)." This pronouncement requires that consideration from vendors, such as advertising support funds and sales volume incentives, be accounted for as a reduction to cost of sales unless certain requirements are met showing that the funds represent a reimbursement of a specific, incremental, identifiable cost incurred by GTSI in selling the vendor's product. If these specific requirements related to individual vendors are met, the consideration is accounted for as a reduction in the related expense category, such as advertising or selling and administrative expense. GTSI provides numerous advertising programs to support vendors, including catalogs, radio, Internet, magazine and newspaper advertising for which the Company receives consideration. As a consequence of adopting EITF 02-16, GTSI recorded $2.4 million of vendor consideration as a reduction of cost of sales this quarter. Excluding the impact of EITF 02-16, and therefore on a non-GAAP basis, the gross profit margin would have been 7.7% this quarter compared to 8.2% in the same period of 2002. The non-GAAP gross profit margin is included in this discussion to provide a meaningful comparison to prior periods. Adopting EITF 02-16 had no impact on GTSI's operating profit, as the $2.4 million of vendor consideration netted against cost of sales would previously have been netted against operating expense. CONFERENCE CALL An investor conference call to discuss first quarter results is scheduled for 11:00 a.m. Eastern Time today. Interested parties are invited to participate by calling (888) 569-5038. The passcode is GTSI. In addition, you may access the web cast on GTSI's Investor Relations page (www.gtsi.com/ir). To listen to the live call on the Internet, go to the web site at least 15 minutes early to register, download and install any necessary audio software. A replay will be available following the conclusion of the call until midnight, April 25, 2003. To access the replay, please dial (888) 203-1112 and enter the passcode 487844. ABOUT GTSI CORP. GTSI Corp. is an information technology (IT) solutions leader, focusing exclusively on Federal, State, and Local government customers worldwide. For nearly two decades, GTSI has served those customers by teaming with global IT leaders like Hewlett-Packard, Panasonic, Microsoft, Cisco, and Sun Microsystems. Offering a broad range of products and services, an extensive contract portfolio, and ISO 9000-registered logistics, GTSI uses its unique Technology Teams to deliver "best of breed" solutions that help government customers do their job more effectively. The Technology Teams include technical experts who support a wide range of integrated IT solutions in such areas as high performance computing, advanced networking, mobile and wireless, web portals, high availability storage and information assurance. GTSI continues to broaden its leadership in electronic commerce and procurement through its government focused website located at GTSI.com. GTSI is headquartered in Northern Virginia, outside of Washington, D.C. Further information about the Company is available at GTSI.com/About. Except for historical information, all of the statements, expectations, beliefs and assumptions contained in the foregoing are "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve a number of risks and uncertainties. It is possible that the assumptions made by management -- including, but not limited to, those relating to revenue, margins, operating results and net income, and the effect of new contracts as well as new vendor relationships -- may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. In addition to the above factors, other important factors that could cause actual results to differ materially are those listed in the Company's most recent report on Form 10-K and included from time to time in other documents filed by the Company with the Securities and Exchange Commission. GTSI and GTSI.com are registered trademarks of GTSI Corp. in the U.S. and other Countries. All trade names are the property of their respective owners. GENERAL MEDIA CONTACT INVESTOR RELATIONS CONTACT - --------------------- -------------------------- Melinda Stamilio Devin Sullivan Periscope Communications The Equity Group Inc. (703) 548-5553 x203 (212) 836-9608 melinda@periscopecommunications.com dsullivan@equityny.com GOVERNMENT TRADE PRESS CONTACT GTSI CONTACT - ------------------------------ ------------ Fern Krauss Tom Mutryn GTSI Corp. Senior VP & Chief Financial Officer (703) 502-2054 (703) 502-2199 fern.krauss@gtsi.com tom.mutryn@gtsi.com ### ### ### GTSI CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31, CHANGE FROM 2002 -------------------- -------------------- 2003 2002 ACTUAL PERCENTAGE ---- ---- ------ ---------- Sales $ 178,858 $ 176,743 $ 2,115 1.2% Cost of sales 162,784 162,232 552 0.3% ---------- --------- --------- ------- Gross margin 16,074 14,511 1,563 10.8% Operating expenses 19,702 15,386 4,316 28.1% ---------- --------- --------- ------- (Loss) income from operations (3,628) (875) (2,753) 314.6% Interest and other income, net (733) (1,770) 1,037 (58.6%) ---------- --------- --------- ------- (Loss) income before taxes (2,895) 895 (3,790) NM Tax (benefit) provision (1,132) 354 (1,486) NM ---------- --------- --------- ------- Net (loss) income $ (1,763) $ 541 $ (2,304) NM ========== ========= ========= ======= Weighted average shares 8,564 8,184 380 4.6% ========== ========= ========= ======= Diluted weighted average shares 8,564 9,498 (934) (9.8%) ========== ========= ========= ======= Net (loss) income per share $ (0.21) $ 0.07 $ (0.28) NM ========== ========= ========= ======= Net income per diluted share $ (0.21) $ 0.06 $ (0.27) NM ========== ========= ========= =======
GTSI CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
MARCH 31, DECEMBER 31, CHANGE FROM 2003 2002 2002 ---- ---- ---- ASSETS Current Cash assets: $ 5,676 $ 32 $ 5,644 Accounts receivable 112,551 139,472 (26,921) Merchandise inventories 56,929 56,039 890 Other current assets 17,308 15,080 2,228 ----------- ----------- ----------- Total current assets 192,464 210,623 (18,159) Property and equipment, net 13,195 11,707 1,488 Other assets 2,669 2,588 81 ----------- ----------- ----------- TOTAL ASSETS $ 208,328 $ 224,918 $ (16,590) =========== =========== =========== Current liabilities Notes payable to banks $ -- $ 7,539 $ (7,539) Accounts payable 118,293 122,432 (4,139) Accrued liabilities 11,944 13,412 (1,468) Accrued warranties 4,187 4,404 (217) ----------- ----------- ----------- Total current liabilities 134,424 147,787 (13,363) Other liabilities 1,642 1,640 2 ----------- ----------- ----------- Total liabilities 136,066 149,427 (13,361) Stockholders' equity 72,262 75,491 (3,229) ----------- ----------- ----------- Total liabilities and stockholders' equity $ 208,328 $ 224,918 $ (16,590) =========== =========== ===========
### 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 thereunto duly authorized. GTSI CORP. By: /s/ Thomas A. Mutryn ------------------------------- Thomas A. Mutryn Senior Vice President and CFO Date: April 23, 2003 -----END PRIVACY-ENHANCED MESSAGE-----