-----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, JPh2B5EFV1r73BTHJ7yrAqe9OB6BHIlKTeYUTaLAi0nFab275D9lt8kF0qjjqVXs kgkocJjXmDPLJxylS/DXiw== 0001005150-03-001679.txt : 20031029 0001005150-03-001679.hdr.sgml : 20031029 20031029135527 ACCESSION NUMBER: 0001005150-03-001679 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031028 ITEM INFORMATION: FILED AS OF DATE: 20031029 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: 03963107 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): October 28, 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 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION The information contained in this Item 12 of this Current Report is being furnished in accordance with SEC Release Nos. 33-8216 and 34-47583. The information, including the exhibits attached hereto, in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as otherwise expressly stated in such filing. Attached and incorporated herein by reference as Exhibit 99.1 is a copy of a press release of GTSI Corp., dated October 28, 2003, reporting GTSI Corp.'s financial results for the three and nine-month periods ended September 30, 2003 and monthly sales. 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: October 28, 2003 INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION 99.1 Press Release issued by GTSI Corp. dated October 28, 2003. EX-99.1 3 ex99-1.txt EXHIBIT 99.1 EXHIBIT 99.1 GTSI Reports Strong Third Quarter Financial Results - --------------------------------------------------- NET INCOME UP 10%, QUARTER-END TOTAL BACKLOG AT $228.3 MILLION CLOSES ON A NEW AND EXPANDED $125 MILLION CREDIT FACILITY CHANTILLY, VA. - October 28, 2003 - GTSI(R) Corp (Nasdaq: GTSI), a leading government technology solutions provider, today announced financial results for the three and nine-month periods ended September 30, 2003, and monthly sales (see attached tables). "GTSI proved once again that we are the preferred provider of information technology solutions to the federal government. In September, a month that is key to our whole year's success, GTSI performed at the highest levels with bookings increasing over 13%, delivering a rock solid third quarter," said Dendy Young, Chairman and Chief Executive Officer of GTSI. "The ability for GTSI to continue at this pace appears to be strong, with the company booked backlog of $228.3 million at the end of September." Q3 EARNINGS AND PROFIT GROWTH - ----------------------------- For the third quarter GTSI reported diluted earnings per share of $0.39. Net income rose to $3.5 million in the third quarter of 2003, representing a 10% increase over the net income of $3.1 million for the third quarter last year. Net income for the 2003 third quarter included interest income of $840,000 versus interest income of $1.3 million in the third quarter of 2002. Sales for the third quarter of 2003 were $273.1 million as compared to $276.8 million for the same period last year. The Company reported net income for the first nine months of 2003 of $2.9 million, or $0.31 per diluted share. Sales for the first nine months were $641.7 million. Gross margin in the third quarter of 2003 increased to 10.1% of total sales from 8.1% of total sales. This increase is due primarily to the January 1, 2003 adoption of 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)," which resulted in reclassifying in 2003 certain vendor funds as a reduction in cost of sales. In addition, the Company's underlying product margin showed a modest increase from the third quarter of 2002 to the third quarter of 2003. GTSI MAPS OUT CUSTOMER CENTRIC REALIGNMENT - ------------------------------------------ Mr. Young continued, "Our customer continues to undergo dramatic change. For the past two years we have seen more repositioning of the government than any time in our 20-year existence. To better serve the government, we are streamlining and realigning our sales and support teams to meet its changing needs." Going forward, GTSI expects to continue to enhance its revenue by adding new vendors and solutions, as well as expanding its sales coverage. Additionally, the Company will selectively examine and evaluate acquisition candidates to augment its internal growth. Gaining higher margin business, pricing and purchasing smarter, and realizing operating efficiencies are expected to result in higher profit margins. Recent examples of margin expansion have been seen in the growth of GTSI service offerings. During the quarter ended September 30, 2003, services generated $27.5 million in revenue a 39.6% increase of $7.8 million over the same period one year ago. SEPTEMBER 2003 SALES - -------------------- Sales for September 2003 were $132.2 million, representing a 4.9% increase of average daily sales from September 2002 of $120.0 million. Month-end total backlog for September 2003 was $228.3 million or a 12.1% increase versus $203.6 million for the same period last year, while net bookings for September 2003 totaled $228.9 million as compared to $192.4 million for September 2002, a 13.3% increase (see attached table). FINANCIAL POSITION - ------------------ Tom Mutryn, GTSI's Senior Vice President and Chief Financial Officer, commented, "GTSI is in an enviable position of being debt free and having a healthy balance sheet. Our expenses for the quarter increased 3% to $22.6 million over expenses in the third quarter 2002, adjusted to remove the impact of vendor considerations for that period." Last week GTSI closed on a new $125 million credit facility meeting GTSI's revolving line of credit and distribution financing needs. Mutryn added, "We believe that the lender's commitment to the size of the credit facility confirms GTSI's solid financial condition and reflects the confidence that they have shown in our business models and prospects. Just as important, this credit facility gives GTSI the ability to meet its ongoing credit needs and to further its strategic goals and corporate development program in the coming years." NEW ACCOUNTING PRONOUNCEMENT - ---------------------------- For comparative purposes, if the Company had applied EITF No. 02-16 to the three-months ended September 30, 2002; gross margin would have increased from $22.4 million to $25.9 million for the third quarter 2002. Gross margin percentage would have increased from 8.1% to 9.3% for the quarter compared to 10.1% for the same period in 2003. CONFERENCE CALL - --------------- An investor conference call to discuss third quarter results is scheduled for 11:00 a.m. Eastern Time October 28, 2003. Interested parties are invited to participate by calling 800-729-7758 or 706-643-1075. 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 6:00 pm EST, October 31, 2003. To access the replay, please dial 800-642-1687 or 706-645-9291. ABOUT GTSI CORP. - ---------------- GTSI Corp. is an information technology (IT) solutions leader, focusing exclusively on Federal, State, and Local government customers worldwide. For 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 9001:2000 standard for quality management, GTSI uses its unique Technology Teams to deliver "best of breed" solutions that help government customers do their job more effectively. 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. GTSI CONTACT: - ------------- Paul Liberty Director of Investor Relations 703.502.2540 PAUL.LIBERTY@GTSI.COM - --------------------- ### ### ### GTSI Corp. Unaudited Consolidated Statements of Operations (in thousands, except per share data)
Three Months September 30, Change from 2002 2003 2002 Actual Percentage -------- -------- -------- ---------- Sales $273,066 $276,846 $ (3,780) (1.4)% Cost of sales 245,569 254,485 (8,916) (3.5)% -------- -------- -------- -------- Gross margin 27,497 22,361 5,136 23.0 % Operating expenses 22,640 18,414 4,226 22.9 % -------- -------- -------- -------- Income from operations 4,857 3,947 910 23.1 % Interest income, net 840 1,288 (448) (34.8)% -------- -------- -------- -------- Income before income taxes 5,697 5,235 462 8.8 % Income tax provision 2,228 2,094 134 6.4 % -------- -------- -------- -------- Net income $ 3,469 $ 3,141 $ 328 10.4 % ======== ======== ======== ======== Basic net income per share $ 0.42 $ 0.38 $ 0.04 10.5 % ======== ======== ======== ======== Diluted net income per share $ 0.39 $ 0.32 $ 0.07 21.9 % ======== ======== ======== ======== Weighted average shares outstanding: Basic 8,238 8,316 (78) (0.9)% ======== ======== ======== ======== Diluted 8,986 9,723 (737) (7.6)% ======== ======== ======== ========
GTSI Corp. Unaudited Consolidated Statements of Operations (in thousands, except per share data)
Nine Months Ended September 30, Change from 2002 2003 2002 Actual Percentage -------- -------- -------- ---------- Sales $641,661 $654,581 $(12,920) (2.0)% Cost of sales 575,333 602,600 (27,267) (4.5)% -------- -------- -------- -------- Gross margin 66,328 51,981 14,347 27.6 % Operating expenses 63,955 48,227 15,728 32.6 % -------- -------- -------- -------- Income from operations 2,373 3,754 (1,381) (36.8)% Interest income, net 2,317 3,669 (1,352) (36.8)% -------- -------- -------- -------- Income before income taxes 4,690 7,423 (2,733) (36.8)% Income tax provision 1,834 2,969 (1,135) (38.2)% -------- -------- -------- -------- Net income $ 2,856 $ 4,454 $ (1,598) (35.9)% ======== ======== ======== ======== Basic net income per share $ 0.34 $ 0.54 $ (0.20) (37.0)% ======== ======== ======== ======== Diluted net income per share $ 0.31 $ 0.46 $ (0.15) (32.2)% ======== ======== ======== ======== Weighted average shares outstanding: Basic 8,352 8,256 96 1.2 % ======== ======== ======== ======== Diluted 9,088 9,608 (520) (5.4)% ======== ======== ======== ========
GTSI Corp. Unaudited Condensed Consolidated Balance Sheets (in thousands)
Change from % Change from September 30, December 31, December 31, December 31, 2003 2002 2002 2002 ------------- ------------ ------------ ------------- ASSETS Current assets: Cash $ 109 $ 32 $ 77 240.6 % Accounts receivable 178,435 139,472 38,963 27.9 % Merchandise inventory 94,826 56,039 38,787 69.2 % Other current assets 24,145 15,080 9,065 60.1 % -------- -------- -------- ------- Total current assets 297,515 210,623 86,892 41.3 % Property and equipment, net 17,366 11,707 5,659 48.3 % Other assets 3,375 2,588 787 30.4 % -------- -------- -------- ------- TOTAL ASSETS $318,256 $224,918 93,338 41.5 % ======== ======== ======== ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Notes payable to banks $ -- $ 7,539 $ (7,539) (100.0)% Accounts payable 219,466 122,433 97,033 79.3 % Accrued liabilities 17,790 13,412 4,378 32.6 % Accrued warranties 3,463 4,403 (940) (21.3)% -------- -------- -------- ------- Total current liabilities 240,719 147,787 92,932 62.9 % Other liabilities 1,761 1,640 121 7.4 % -------- -------- -------- ------- Total liabilities 242,480 149,427 93,053 62.3 % Stockholders' equity 75,776 75,491 285 0.4 % -------- -------- -------- ------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $318,256 $224,918 $ 93,338 41.5 % ======== ======== ======== =======
GTSI Corp. Monthly Results Year-over- Year Year-over-Year Month-End Change Change Total Year-over- Monthly Average Business Sale ($ in Average Daily Backlog Year Bookings Daily Days in Month Millions) Sales ($ in Millions) Change ($ in Millions) Bookings ------------------------------------------------------------------------------------------------------------ January 2002 22 $ 46.8 -- $ 72.2 -- $ 42.4 -- February 2002 19 50.3 -- 99.7 -- 77.8 -- March 2002 20 79.6 -- 93.5 -- 73.4 -- April 2002 22 46.0 -- 102.8 -- 55.3 -- May 2002 22 61.4 -- 115.3 -- 73.9 -- June 2002 20 93.6 -- 118.4 -- 96.7 -- July 2002 22 74.2 -- 121.9 -- 77.7 -- August 2002 22 82.6 -- 131.2 -- 91.9 -- September 2002 20 120.0 -- 203.6 -- 192.4 -- October 2002 23 104.5 -- 161.2 -- 62.1 -- November 2002 19 94.0 -- 106.6 -- 39.4 -- December 2002 21 81.7 -- 91.3 -- 66.4 -- January 2003 22 53.5 14.3% 92.5 28.1% 54.7 29.0 % February 2003 19 55.8 10.9% 85.1 (14.6)% 48.4 (37.8)% March 2003 21 69.6 (16.7)% 72.2 (22.8)% 56.7 (26.4)% April 2003 22 48.3 5.0% 89.8 (12.7)% 65.9 19.2 % May 2003 20 60.4 8.2% 86.8 (24.7)% 57.4 (14.6)% June 2003 21 81.0 (17.6)% 106.2 (10.3)% 100.4 (1.1)% July 2003 22 75.5 1.8% 116.5 (4.4)% 85.8 10.4 % August 2003 21 65.4 (17.1)% 131.6 0.3% 80.5 (8.2)% September 2003 21 132.2 4.9% 228.3 12.1% 228.9 13.3 %
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