x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF |
THE SECURITIES EXCHANGE ACT OF 1934. |
¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF |
THE SECURITIES EXCHANGE ACT OF 1934. |
| Delaware |
74-3032373 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification
No.) |
| 6600 Wall Street, Mobile, Alabama |
36695 | |
| (Address of Principal Executive Offices) |
(Zip Code) |
| Page | ||||
| PART I. FINANCIAL INFORMATION |
||||
| Item 1. |
3 | |||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
10 | |||
| Item 3. |
14 | |||
| Item 4. |
14 | |||
| PART II.
OTHER INFORMATION |
15 | |||
| Item 1. |
15 | |||
| Item 2. |
15 | |||
| Item 3. |
15 | |||
| Item 4. |
15 | |||
| Item 5. |
15 | |||
| Item 6. |
16 | |||
| September 30, 2002 |
December 31, 2001 |
|||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
6,969,813 |
|
$ |
2,018,643 |
| ||
| Accounts receivable, net of allowance for doubtful accounts of $718,000 and $532,000, respectively |
|
11,980,510 |
|
|
8,107,467 |
| ||
| Financing receivables, current portion |
|
633,343 |
|
|
769,423 |
| ||
| Inventories |
|
1,255,325 |
|
|
1,126,353 |
| ||
| Deferred tax assets |
|
1,027,106 |
|
|
|
| ||
| Prepaid expenses |
|
367,437 |
|
|
196,276 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
22,233,534 |
|
|
12,218,162 |
| ||
| Property and equipment |
||||||||
| Land |
|
936,026 |
|
|
936,026 |
| ||
| Maintenance equipment |
|
2,388,450 |
|
|
2,114,224 |
| ||
| Computer equipment |
|
3,303,911 |
|
|
2,906,476 |
| ||
| Office furniture and equipment |
|
906,114 |
|
|
793,576 |
| ||
| Automobiles |
|
89,934 |
|
|
89,934 |
| ||
| |
|
|
|
|
| |||
| |
7,624,435 |
|
|
6,840,236 |
| |||
| Less accumulated depreciation |
|
(3,097,017 |
) |
|
(2,805,709 |
) | ||
| |
|
|
|
|
| |||
| Net property and equipment |
|
4,527,418 |
|
|
4,034,527 |
| ||
| Financing receivables |
|
885,535 |
|
|
998,797 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
27,646,487 |
|
$ |
17,251,486 |
| ||
| |
|
|
|
|
| |||
| Liabilities and Stockholders Equity |
||||||||
| Current liabilities: |
||||||||
| Current portion of note payable |
$ |
|
|
$ |
86,185 |
| ||
| Accounts payable |
|
1,067,226 |
|
|
1,033,349 |
| ||
| Deferred revenue |
|
1,865,171 |
|
|
1,601,130 |
| ||
| Sales, income and use taxes payable |
|
1,723,785 |
|
|
1,879,939 |
| ||
| Accrued vacation |
|
1,356,459 |
|
|
1,075,450 |
| ||
| Accrued stockholders distribution |
|
1,250,000 |
|
|
|
| ||
| Other accrued liabilities |
|
1,048,670 |
|
|
875,339 |
| ||
| Income taxes payable |
|
721,390 |
|
|
|
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
9,032,701 |
|
|
6,551,392 |
| ||
| Note payable |
|
|
|
|
663,712 |
| ||
| Stockholders equity: |
||||||||
| Common stock, par value $0.001 per share; 30,000,000 shares authorized; 10,488,000 and 9,288,000 shares issued and
outstanding, respectively |
|
10,488 |
|
|
9,288 |
| ||
| Additional paid-in capital |
|
17,259,403 |
|
|
109,811 |
| ||
| Deferred compensation |
|
(238,183 |
) |
|
|
| ||
| Retained earnings |
|
1,582,078 |
|
|
9,917,283 |
| ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
18,613,786 |
|
|
10,036,382 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
27,646,487 |
|
$ |
17,251,486 |
| ||
| |
|
|
|
|
| |||
| Three months ended September
30 |
Nine months ended September
30 |
||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
||||||||||||
| Sales revenues: |
|||||||||||||||
| System sales |
$ |
9,935,868 |
$ |
7,385,034 |
|
$ |
27,650,220 |
|
$ |
21,179,195 |
| ||||
| Support and maintenance |
|
7,616,395 |
|
6,540,505 |
|
|
22,083,538 |
|
|
18,821,218 |
| ||||
| Outsourcing |
|
1,344,329 |
|
923,871 |
|
|
3,594,985 |
|
|
2,511,256 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Total sales revenue |
|
18,896,592 |
|
14,849,410 |
|
|
53,328,743 |
|
|
42,511,669 |
| ||||
| Costs of sales: |
|||||||||||||||
| System sales |
|
6,544,503 |
|
5,625,230 |
|
|
18,904,917 |
|
|
16,113,266 |
| ||||
| Support and maintenance |
|
3,578,257 |
|
2,944,399 |
|
|
10,084,417 |
|
|
8,481,042 |
| ||||
| Outsourcing |
|
868,432 |
|
615,871 |
|
|
2,216,131 |
|
|
1,496,512 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Total costs of sales |
|
10,991,192 |
|
9,185,500 |
|
|
31,205,465 |
|
|
26,090,820 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
7,905,400 |
|
5,663,910 |
|
|
22,123,278 |
|
|
16,420,849 |
| ||||
| Operating expenses: |
|||||||||||||||
| Sales and marketing |
|
1,660,244 |
|
1,200,704 |
|
|
4,333,138 |
|
|
3,730,978 |
| ||||
| General and administrative |
|
3,203,612 |
|
2,369,664 |
|
|
9,187,259 |
|
|
6,960,067 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
4,863,856 |
|
3,570,368 |
|
|
13,520,397 |
|
|
10,691,045 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Operating income |
|
3,041,544 |
|
2,093,542 |
|
|
8,602,881 |
|
|
5,729,804 |
| ||||
| Other income (expense): |
|||||||||||||||
| Interest income |
|
64,020 |
|
30,382 |
|
|
157,887 |
|
|
85,776 |
| ||||
| Miscellaneous income |
|
117,238 |
|
77,642 |
|
|
225,726 |
|
|
105,955 |
| ||||
| Interest expense |
|
|
|
(15,460 |
) |
|
(23,677 |
) |
|
(60,841 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Total other income |
|
181,258 |
|
92,564 |
|
|
359,936 |
|
|
130,890 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Income before taxes |
|
3,222,802 |
|
2,186,106 |
|
|
8,962,817 |
|
|
5,860,694 |
| ||||
| Income taxes |
|
1,146,139 |
|
|
|
|
1,632,286 |
|
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Net income |
$ |
2,076,663 |
$ |
2,186,106 |
|
$ |
7,330,531 |
|
$ |
5,860,694 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Net income per sharebasic |
$ |
0.20 |
$ |
0.24 |
|
$ |
0.74 |
|
$ |
0.63 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Net income per sharediluted |
$ |
0.20 |
$ |
0.24 |
|
$ |
0.74 |
|
$ |
0.63 |
| ||||
| |
|
|
|
|
|
|
|
|
|
| |||||
| Weighted average shares outstanding |
|||||||||||||||
| Basic |
|
10,488,000 |
|
9,288,000 |
|
|
9,868,220 |
|
|
9,288,000 |
| ||||
| Diluted |
|
10,589,226 |
|
9,288,000 | |||||||||||