-----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, UnfoA4gz+FWDtmw4Kif7tKr3pHh9fZLn1htC+jAtxVlQ0yOq+pb7zoA0VfBt4NIh 3Mf5Nxey0hiFu3uz4YbjiQ== 0000924646-03-000007.txt : 20030423 0000924646-03-000007.hdr.sgml : 20030423 20030423081850 ACCESSION NUMBER: 0000924646-03-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030331 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MPS GROUP INC CENTRAL INDEX KEY: 0000924646 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HELP SUPPLY SERVICES [7363] IRS NUMBER: 593116655 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24484 FILM NUMBER: 03659102 BUSINESS ADDRESS: STREET 1: 1 INDEPENDENT DR CITY: JACKSONVILLE STATE: FL ZIP: 32202 BUSINESS PHONE: 9043602000 MAIL ADDRESS: STREET 1: 1 INDEPENDENT DR CITY: JACKSONVILLE STATE: FL ZIP: 32202 FORMER COMPANY: FORMER CONFORMED NAME: ACCUSTAFF INC DATE OF NAME CHANGE: 19940606 FORMER COMPANY: FORMER CONFORMED NAME: MODIS PROFESSIONAL SERVICES INC DATE OF NAME CHANGE: 19981001 8-K 1 form8k.txt FORM 8-K FOR Q1 2003 PRESS RELEASE 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 April 23, 2003 ------------------------------------------------ Date of Report (Date of earliest event reported) Commission File Number 0-24484 MPS Group, Inc. ------------------------------------------------------ (Exact name of Registrant as specified in its charter) Florida 59-3116655 --------------------------------- ----------------------- (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 1 Independent Drive, Jacksonville, Florida 32202 ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (904) 360-2000 ---------------------------------------------------- (Registrant's telephone number, including area code) Item 7. Financial Statements, Pro Forma Information and Exhibits (c) Exhibits. Exhibit 99.1 Registrant's press release dated April 23, 2003. Item 9. Regulation FD Disclosure (and Item 12. Results of Operations and Financial Condition) The information contained in this Item 9 of the Current Report is being furnished pursuant to 'Item 12. Results of Operations and Financial Condition' of Form 8-K in accordance with Securities and Exchange Commission Release Nos. 33-8216 and 34-47583. The information, including 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, as amended, except as otherwise expressly stated in such filing. On April 23, 2003, MPS Group, Inc. released a press release announcing financial results for the three months ended March 31, 2003. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. SIGNATURE 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. MPS Group, Inc. Date: April 23, 2003 /s/ Robert P. Crouch --------------------------------- Robert P. Crouch Senior Vice President, Treasurer and Chief Financial Officer EX-99 3 april23release.txt EX 99.1 MPS GROUP, INC. PRESS RELEASE MPS GROUP ANNOUNCES FIRST QUARTER RESULTS IN LINE WITH MANAGEMENT GUIDANCE JACKSONVILLE, FL (April 23, 2003) -- MPS Group, Inc. (NYSE:MPS), a leading provider of specialty staffing and business solutions, today announced financial results for the first quarter ended March 31, 2003. The Company reported revenue of $272 million and diluted net income per common share of $0.03 for the quarter ended March 31, 2003, compared with revenue of $296 million and diluted net income per common share before cumulative effect of accounting change of $0.02 for the quarter ended March 31, 2002. The results for the quarter were within the range of guidance previously provided by Company management. First Quarter Summary o Revenue of $272 million o EBITDA of $10 million and operating income of $5 million o Diluted net income per common share of $0.03 o Cash flow from operations of $16 million o Cash balance of $76 million as of March 31, 2003 o Repurchased 783,000 shares of MPS common stock during quarter o Professional services division records sequential increase in revenue versus the fourth quarter of 2002 o IT solutions unit Idea Integration achieves third consecutive quarter of EBITDA profitability despite difficult demand environment o IT services unit Modis maintains continued profitability and increases gross margin percentage by 130 basis points versus the first quarter of 2002 Business Unit Performance During the first quarter, the Company continued to experience soft demand for its services due to the poor economy and its effect on employment and technology spending. Despite this, many of the Company's business units made progress. A number of the Company's professional services units experienced a sequential increase in revenue versus the fourth quarter of 2002, including the engineering unit Entegee, United Kingdom accounting unit Badenoch & Clark, healthcare staffing unit Soliant Health, and legal services unit Special Counsel. Special Counsel in particular recorded strong performance, with 22% revenue growth year-over-year versus the first quarter of 2002 and 6% sequential revenue growth versus the fourth quarter of 2002. Modis, the Company's IT services unit, achieved an increase in gross margin percentage of 130 basis points versus the first quarter of 2002, maintained its consistent profitability, and continued to win preferred provider bids by its clients. Idea Integration, the Company's IT solutions unit, achieved its third consecutive quarter of EBITDA profitability, representing standout performance in a particularly challenging industry segment. Beeline, the Company's human capital solutions unit, continued to achieve success in completing large, enterprise-wide implementations for its clients and introduced a new solution - Beeline for Performance Management. Financial Position and Cash Flow The Company generated $16 million of cash flow from operations during the first quarter and increased its cash position to $76 million as of March 31, 2003. The Company's cash position has increased by $9 million since December 31, 2002, and the Company continues to have no debt outstanding under its $200 million credit facility. The Company repurchased 783,000 shares of MPS common stock for $3.7 million during the quarter and has over $59 million of its previously announced $65 million buyback authorization remaining. Additionally, the Company spent $1.3 million on capital expenditures and $1.0 million, net of cash acquired, on the acquisition of a legal services company. Management Comments Timothy Payne, MPS Chief Executive Officer, stated, "We believe we continue to take market share from competitors through sound execution. While our clients' spending levels are well below what we have experienced in years past, they seem to have leveled off, and we feel confident that client spending will increase as the economy improves. We are well positioned to take advantage when this happens." "The trends we experienced during the quarter and into early April appear to indicate that demand for our services is stabilizing," stated Robert Crouch, MPS Chief Financial Officer. "Therefore, we expect our revenue and diluted net income per common share for the second quarter to be in the range of $270 million to $280 million and $0.04 to $0.06, respectively. This compares with revenue and diluted net income per common share of $289 million and $0.04, respectively, for the quarter ended June 30, 2002." Conference Call Scheduled Today The live broadcast of MPS Group's conference call will begin at 9:00 a.m. Eastern Time today. The link to this event may be found at the Company's website: www.mpsgroup.com. If you do not have Internet access, you may listen to the call by dialing (913) 981-5558. If you are unable to participate at that time, online and telephonic replays will be available two hours after the call ends and will continue until 8:00 p.m. on April 30. To access the telephonic replay, please dial (719) 457-0820 and enter 407145 when prompted for the reservation code. The link for the online replay may also be found on the Company's website. About MPS Group MPS Group is a leading provider of staffing, consulting, and solutions in the disciplines of information technology, finance and accounting, law, engineering, and healthcare. MPS Group delivers its services to government entities and businesses in virtually all industries throughout the United States, Canada, the United Kingdom, and Europe. A Fortune 1000 company with headquarters in Jacksonville, Florida, MPS Group trades on the New York Stock Exchange. For more information about MPS Group, please visit www.mpsgroup.com. Except for materials described above, none of the information on our website should be considered included in this release. Forward-Looking Statements The statements contained in this press release should be considered forward-looking statements that are subject to risks, uncertainties or assumptions described above and may be affected by other factors, including but not limited to: fluctuations in the economy and financial markets in general and in the Company's industry segments in particular; industry trends towards consolidating vendor lists; the demand for the Company's services, including the impact of changes in utilization rates; consolidation or bankruptcy of major customers; the effect of competition, including the Company's ability to expand into new markets and to maintain profit margins in the face of pricing pressures; the Company's ability to retain significant existing customers or obtain new customers; the Company's ability to recruit, place and retain consultants and professional employees; the Company's ability to identify and complete acquisition targets and to successfully integrate acquired operations into the Company; possible changes in governmental regulations affecting the Company's operations, including possible changes to regulations relating to benefits for consultants and temporary personnel; unexpected fluctuations in interest rates or foreign currency exchange rates; loss of key employees; and other factors discussed in the Company's filings with the Securities and Exchange Commission. In some cases, you can identify forward-looking statements by terminology such as "will," "may," "should," "could," "expects," "plans," "hopes," "indicates," "projects," "anticipates," "believes," "estimates," "appears," "predicts," "potential," "continues," "would," or "become," or the negative of these terms or other comparable terminology. Readers are urged to review and consider the factors discussed in our Form 10-K for 2002 and in subsequent filings with the Securities and Exchange Commission. Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Company may vary materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements are based on beliefs and assumptions of the Company's management and on information then currently available to management. Undue reliance should not be placed on such forward-looking statements. Forward-looking statements are not guarantees of performance. Such forward-looking statements were prepared by the Company based upon information available at the time of such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events. MPS Group, Inc. Unaudited Operating Highlights (in thousands, except per share amounts)
Three Months Ended March 31, ------------------------------- 2003 2002 Operating Highlights: ------------------------------- Revenue: IT Services $ 126,620 $ 150,747 Professional Services 126,977 122,908 IT Solutions 18,202 22,798 ------------- ------------- Total revenue 271,799 296,453 Gross profit: IT Services 27,593 30,935 Professional Services 36,420 37,973 IT Solutions 6,220 7,350 ------------- ------------- Total gross profit 70,233 76,258 ------------- ------------- General and administrative expenses 60,602 66,547 Depreciation and intangibles amortization 4,620 4,998 ------------- ------------- Total operating expenses 65,222 71,545 ------------- ------------- Income from operations 5,011 4,713 Other expense, net (6) (1,574) ------------- ------------- Income before provision for income taxes 5,005 3,139 Tax provision 2,052 1,193 ------------- ------------- Income before cumulative effect of accounting change 2,953 1,946 Cumulative effect of accounting change, net of income tax benefit - (553,712) ------------- ------------- Net income (loss) $ 2,953 $ (551,766) ============= ============= Diluted net income per common share before cumulative effect of accounting change $ 0.03 $ 0.02 Cumulative effect of accounting change, net of tax benefit - (5.49) ------------- ------------- Diluted net income (loss) per common share $ 0.03 $ (5.47) ============= ============= Diluted common shares outstanding 102,677 100,799 ============= ============= As of ------------------------------- March 31, December 31, 2003 2002 Balance Sheet Highlights: ------------------------------- Cash and cash equivalents $ 76,421 $ 66,934 Working capital 172,959 171,931 Total assets 899,938 897,983 Long-term debt - - Stockholders' equity 780,058 781,559
MPS Group, Inc. Reconciliation of Non-GAAP Financial Measures to Most Comparable GAAP Financial Measures
Three Months Ended March 31, ------------------------------- 2003 2002 ------------------------------- MPS Group, Inc. EBITDA $ 9,631 $ 9,711 Depreciation and intangibles amortization (4,620) (4,998) ------------- ------------- Income from operations $ 5,011 $ 4,713 ============= =============
Three Months Ended ------------------------------------------------- March 31, December 31, September 30, 2003 2002 2002 -------------------------------------------------- Idea Integration EBITDA $ 1,227 $ 1,316 $ 1,486 Depreciation and intangibles amortization (811) (1,036)) (1,115) ------------- -------------- ------------- Income from operations before charge 416 280 371 Fourth quarter 2002 charge for exit costs - (7,861) - ------------- -------------- ------------- Income from operations $ 416 $ (7,581) $ 371 ============= ============== =============
The term 'Cash flow from operations' is a GAAP financial measure titled 'Net cash provided by operating activities on our Consolidated Statement of Cash Flows. -----END PRIVACY-ENHANCED MESSAGE-----