-----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, PMGSZqQDLmfdJoP4+dp2gIBJbv6KzV4PJcA4/sOmteNUW7Av35kKHgmG9ZNxh04b jjtMTgWq4s5Yxv9FJz9eEw== 0000924646-03-000017.txt : 20030722 0000924646-03-000017.hdr.sgml : 20030722 20030722083555 ACCESSION NUMBER: 0000924646-03-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030722 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030722 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: 03795402 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: MODIS PROFESSIONAL SERVICES INC DATE OF NAME CHANGE: 19981001 FORMER COMPANY: FORMER CONFORMED NAME: ACCUSTAFF INC DATE OF NAME CHANGE: 19940606 8-K 1 form8k.txt FORM 8-K DATED JULY 22, 2003 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 July 22, 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 July 22, 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 July 22, 2003, MPS Group, Inc. released a press release announcing financial results for the three and six months ended June 30, 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: July 22, 2003 /s/ Robert P. Crouch --------------------------------- Robert P. Crouch Senior Vice President, Treasurer and Chief Financial Officer EX-99 2 pressrelease.txt EX 99.1 MPS SECOND QUARTER PRESS RELEASE MPS Group Announces Second Quarter Results At Top End of Management Guidance Tuesday July 22, 7:03 am ET JACKSONVILLE, Fla., July 22 /PRNewswire-FirstCall/ -- MPS Group, Inc. (NYSE: MPS - - News), a leading provider of specialty staffing and business solutions, today announced financial results for the second quarter and six months ended June 30, 2003. The Company reported revenue of $279 million and diluted net income per common share of $0.06 for the quarter ended June 30, 2003, compared with revenue of $289 million and diluted net income per common share of $0.04 for the quarter ended June 30, 2002. Results for the period were at the top end of the range of guidance previously provided by Company management. Second Quarter Summary -- Revenue of $279 million -- EBITDA of $14.3 million and operating income of $9.9 million -- Diluted net income per common share of $0.06, a 50% increase versus the second quarter of 2002 -- Cash flow from operations of $31 million -- Cash balance of $102 million and no debt outstanding under the existing credit facility as of June 30, 2003 Business Unit Performance During the second quarter, the Company delivered sequential increases in both revenue and operating income versus the first quarter of 2003 in all three of its reporting segments. Modis, the Company's information technology (IT) services unit, improved revenue by 1.3% and improved operating income sequentially versus the first quarter of 2003. The increase in profitability is attributable to a sequential 110 basis point increase in gross margin combined with the unit's ability to increase revenue without substantially increasing general and administrative costs. Compared to the second quarter of 2002, Modis increased gross margin by 150 basis points. While the Company has still not seen a meaningful increase in demand for IT services, Modis slightly increased billable headcount over the course of the second quarter due to solid execution. The Company's professional services division improved revenue by 2.8% and operating income by over 33% sequentially versus the first quarter of 2003. The three largest business units in the professional services division, accounting, legal, and engineering, each recorded sequential increases in revenue. The legal unit, Special Counsel, delivered particularly strong revenue growth with a sequential increase of 12.6%. While demand for the Company's professional services offerings remained relatively weak, some encouraging signs were visible in the form of an increase in billable headcount over the course of the quarter and a sequential increase in permanent placement fees. Idea Integration, the Company's IT solutions business unit, improved revenue by 10.2% and operating income substantially versus the first quarter of 2003. The second quarter performance was reflective of good execution by Idea Integration and the effect of a positive contribution to revenue related to the completion of a large project. Even without the positive contribution, Idea Integration improved both revenue and profits on a sequential basis. Demand for Idea Integration services improved slightly in practices devoted to optimizing current systems, such as business intelligence, enterprise application integration, and application maintenance. However, demand for new application development solutions remained soft. Financial Position and Cash Flow The Company generated $31 million of cash flow from operations during the second quarter and increased its cash position to $102 million as of June 30, 2003. The Company continues to have no debt outstanding under the existing credit facility. The Company achieved an eight-day reduction in days-sales- outstanding in the second quarter versus the first quarter of 2003. During the quarter, the Company repurchased 540,000 shares of MPS common stock for $3.7 million and spent $2.1 million on capital expenditures. Management Comments Timothy Payne, MPS Chief Executive Officer, stated, "While the hiring and economic environment remains challenging, we are encouraged by this successful quarter. We improved revenue, gross profits, and earnings versus the first quarter and continued to improve our overall financial position. This success is attributable to hard work and good execution by our people -- I applaud their efforts and resourcefulness. We are hopeful we will soon see improvements in the business environment and believe we are well positioned for future growth." "While we are starting to see a slight increase in our revenue which may indicate some improvement in demand, the macro hiring environment is still not very favorable," stated Robert Crouch, MPS Chief Financial Officer. "Therefore, we expect our revenue and diluted net income per common share for the third quarter to be in the range of $275 million to $285 million and $0.05 to $0.07, respectively. This compares with revenue and diluted net income per common share of $289 million and $0.05, respectively, for the quarter ended September 30, 2002." Conference Call Scheduled Today The live broadcast of MPS Group's conference call will begin at 10:00 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) 981-5522. 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 July 29. To access the telephonic replay, please dial (719) 457-0820 and enter 133454 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 Six Months Ended June 30, June 30, ---------------------- ---------------------- 2003 2002 2003 2002 --------- --------- --------- --------- Operating Highlights: Revenue: IT Services $ 128,256 $ 145,974 $ 254,876 $ 296,721 Professional Services 130,584 121,630 257,561 244,538 IT Solutions 20,063 21,049 38,265 43,847 --------- --------- --------- --------- Total revenue 278,903 288,653 550,702 585,106 Gross profit: IT Services 29,345 31,231 56,938 62,166 Professional Services 37,726 36,798 74,146 74,771 IT Solutions 8,400 6,492 14,620 13,842 --------- --------- --------- --------- Total gross profit 75,471 74,521 145,704 150,779 --------- --------- --------- --------- General and administrative expenses 61,161 61,550 121,758 128,097 Depreciation and intangibles amortization 4,439 4,925 9,059 9,923 --------- --------- --------- --------- Total operating expenses 65,600 66,475 130,817 138,020 --------- --------- --------- --------- Income from operations 9,871 8,046 14,887 12,759 Interest and other expense, net (9) (981) (15) (2,555) --------- --------- --------- --------- Income before provision for income taxes and cumulative effect of accounting change 9,862 7,065 14,872 10,204 Provision for income taxes 4,043 2,889 6,109 4,082 --------- --------- --------- --------- Income before cumulative effect of accounting change 5,819 4,176 8,763 6,122 Cumulative effect of accounting change, net of tax benefit -- -- -- (553,712) --------- --------- --------- --------- Net income (loss) $ 5,819 $ 4,176 $ 8,763 $(547,590) ========= ========= ========= ========= Diluted net income per common share before cumulative effect of accounting change $ 0.06 $ 0.04 $ 0.09 $ 0.06 Cumulative effect of accounting change, net of tax benefit -- -- -- (5.43) --------- --------- --------- --------- Diluted net income (loss) per common share $ 0.06 $ 0.04 $ 0.09 $ (5.37) ========= ========= ========= ========= Diluted common shares outstanding 103,002 102,996 102,840 101,897 ========= ========= ========= ========= As of ---------------------- June 30, Dec. 31, 2003 2002 --------- --------- Cash and cash equivalents $ 102,368 $ 66,934 Working capital 188,706 171,931 Total assets 894,645 897,983 Long-term debt -- -- Stockholders' equity 785,868 781,559
MPS Group, Inc. Reconciliation of Non-GAAP Financial Measures to Most Comparable GAAP Financial Measures (in thousands)
Three Months Ended Six Months Ended June 30, June 30, ---------------------- ---------------------- 2003 2002 2003 2002 --------- --------- --------- --------- MPS Group, Inc. EBITDA $ 14,310 $ 12,971 $ 23,946 $ 22,682 Depreciation and intangibles amortization 4,439 4,925 9,059 9,923 --------- --------- --------- --------- Income from operations 9,871 8,046 14,887 12,759 Interest and other expense, net (9) (981) (15) (2,555) --------- --------- --------- --------- Income before provision for income taxes and cumulative effect of accounting change 9,862 7,065 14,872 10,204 Provision for income taxes 4,043 2,889 6,109 4,082 --------- --------- --------- --------- Income before cumulative effect of accounting change 5,819 4,176 8,763 6,122 Cumulative effect of accounting change, net of tax benefit -- -- -- (553,712) --------- --------- --------- --------- Net income (loss) $ 5,819 $ 4,176 $ 8,763 $(547,590) ========= ========= ========= =========
The term "cash flow from operations" is a GAAP financial measure titled "Net cash provided by operating activities" on the Company's Consolidated Statement of Cash Flows. The term "operating income" is a GAAP financial measure titled "Income from operations" on the Company's Consolidated Statement of Income. -----END PRIVACY-ENHANCED MESSAGE-----