| Delaware |
38-2363156 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) | |
| 7171 Forest Lane, Dallas, TX 75230 | ||
| (Address of principal executive offices, including zip code) | ||
| Page | ||||
| PART I. |
FINANCIAL INFORMATION |
|||
| Item 1. |
Financial Statements (unaudited) |
|||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
17 | |||
| Item 3. |
28 | |||
| Item 4. |
28 | |||
| PART II. |
OTHER INFORMATION |
|||
| Item 1. |
29 | |||
| Item 6. |
29 |
| September 30, 2002 |
December 31, 2001 |
||||||
| Assets |
|||||||
| Current assets: |
|||||||
| Cash and cash equivalents |
$ |
124,434 |
$ |
123,150 |
| ||
| Receivables, net |
|
150,087 |
|
134,980 |
| ||
| Inventories |
|
36,341 |
|
29,608 |
| ||
| Other |
|
5,604 |
|
8,131 |
| ||
| |
|
|
|
| |||
| Total current assets |
|
316,466 |
|
295,869 |
| ||
| Property and equipment, net |
|
25,750 |
|
31,566 |
| ||
| Goodwill |
|
101,967 |
|
99,643 |
| ||
| Intangible assets, net |
|
8,714 |
|
11,446 |
| ||
| Other |
|
4,007 |
|
5,559 |
| ||
| |
|
|
|
| |||
| Total assets |
$ |
456,904 |
$ |
444,083 |
| ||
| |
|
|
|
| |||
| Liabilities and Stockholders Equity |
|||||||
| Current liabilities: |
|||||||
| Accounts payable |
$ |
137,312 |
$ |
120,173 |
| ||
| Accrued liabilities |
|
70,075 |
|
88,598 |
| ||
| |
|
|
|
| |||
| Total current liabilities |
|
207,387 |
|
208,771 |
| ||
| Stockholders equity: |
|||||||
| Preferred stock |
|
15,000 |
|
15,000 |
| ||
| Common stock |
|
489 |
|
498 |
| ||
| Additional paid-in capital |
|
73,517 |
|
76,252 |
| ||
| Retained earnings |
|
160,511 |
|
149,131 |
| ||
| Treasury stock |
|
|
|
(5,569 |
) | ||
| |
|
|
|
| |||
| Total stockholders equity |
|
249,517 |
|
235,312 |
| ||
| |
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
456,904 |
$ |
444,083 |
| ||
| |
|
|
|
| |||
| Three months ended September
30, |
Nine months ended September
30, | ||||||||||||
| 2002 |
2001 |
2002 |
2001 | ||||||||||
| Revenue: |
|||||||||||||
| Product |
$ |
333,081 |
|
$ |
332,877 |
$ |
942,640 |
$ |
1,234,956 | ||||
| Service |
|
81,008 |
|
|
71,883 |
|
224,555 |
|
212,801 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Total revenue |
|
414,089 |
|
|
404,760 |
|
1,167,195 |
|
1,447,757 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Cost of revenue: |
|||||||||||||
| Product |
|
306,955 |
|
|
299,792 |
|
863,504 |
|
1,121,887 | ||||
| Service |
|
54,574 |
|
|
45,638 |
|
146,598 |
|
137,382 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Total cost of revenue |
|
361,529 |
|
|
345,430 |
|
1,010,102 |
|
1,259,269 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Gross margin |
|
52,560 |
|
|
59,330 |
|
157,093 |
|
188,488 | ||||
| Operating expenses: |
|||||||||||||
| Selling |
|
11,286 |
|
|
14,927 |
|
35,105 |
|
52,029 | ||||
| Service |
|
10,223 |
|
|
14,359 |
|
32,139 |
|
41,674 | ||||
| General and administrative |
|
17,770 |
|
|
22,446 |
|
54,265 |
|
66,924 | ||||
| Depreciation and amortization |
|
4,380 |
|
|
5,205 |
|
13,854 |
|
16,594 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
43,659 |
|
|
56,937 |
|
135,363 |
|
177,221 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Earnings from operations |
|
8,901 |
|
|
2,393 |
|
21,730 |
|
11,267 | ||||
| Financing expense, net |
|
(27 |
) |
|
455 |
|
523 |
|
2,932 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Earnings before income taxes and cumulative effect of a change in accounting principle for negative
goodwill |
|
8,928 |
|
|
1,938 |
|
21,207 |
|
8,335 | ||||
| Income taxes |
|
3,471 |
|
|
776 |
|
8,381 |
|
3,335 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Earnings before cumulative effect of a change in accounting principle for negative goodwill |
|
5,457 |
|
|
1,162 |
|
12,826 |
|
5,000 | ||||
| Cumulative effect of a change in accounting principle for negative goodwill, net of income taxes |
|
|
|
|
|
|
707 |
|
| ||||
| |
|
|
|
|
|
|
|
| |||||
| Net earnings |
$ |
5,457 |
|
$ |
1,162 |
$ |
13,533 |
$ |
5,000 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Basic earnings per common share: |
|||||||||||||
| Earnings before cumulative effect of a change in accounting principle for negative goodwill |
$ |
.11 |
|
$ |
.02 |
$ |
.25 |
$ |
.09 | ||||
| Cumulative effect of a change in accounting principle for negative goodwill, net of income taxes |
|
|
|
|
|
|
.01 |
|
| ||||
| |
|
|
|
|
|
|
|
| |||||
| Net earnings |
$ |
.11 |
|
$ |
.02 |
$ |
.26 |
$ |
.09 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Diluted earnings per common share: |
|||||||||||||
| Earnings before cumulative effect of a change in accounting principle for negative goodwill |
$ |
.10 |
|
$ |
.02 |
$ |
.24 |
$ |
.09 | ||||
| Cumulative effect of a change in accounting principle for negative goodwill, net of income taxes |
|
|
|
|
|
|
.01 |
|
| ||||
| |
|
|
|
|
|
|
|
| |||||
| Net earnings |
$ |
.10 |
|
$ |
.02 |
$ |
.25 |
$ |
.09 | ||||
| |
|
|
|
|
|
|
|
| |||||
| Average common shares outstanding: |
|||||||||||||
| Basic |
|
48,734 |
|
|
48,146 |
|
48,513 |
|
47,988 | ||||
| Diluted |
|
51,001 |
|
|
49,355 |
|
50,154 |
|
48,557 | ||||
| Nine months ended September 30, |
||||||||
| 2002 |
2001 |
|||||||
| Cash flows from operating activities: |
||||||||
| Earnings before cumulative effect of a change in accounting principle for negative goodwill |
$ |
12,826 |
|
$ |
5,000 |
| ||
| Adjustments to reconcile earnings before cumulative effect of a change in accounting principle for negative goodwill to
net cash provided by (used in) operating activities: |
||||||||
| Depreciation and amortization |
|
13,854 |
|
|
16,594 |
| ||
| Deferred income taxes |
|
503 |
|
|
(1,856 |
) | ||
| Changes in assets and liabilities, excluding effects from acquisitions: |
||||||||
| Receivables |
|
(15,107 |
) |
|
154,199 |
| ||
| Inventories |
|
(6,644 |
) |
|
54,119 |
| ||
| Other current assets |
|
(1,361 |
) |
|
(1,552 |
) | ||
| Accounts payable |
|
17,139 |
|
|
(9,599 |
) | ||
| Accrued liabilities and other |
|
(16,450 |
) |
|
(10,126 |
) | ||
| |
|
|
|
|
| |||
| Net cash provided by operating activities |
|
4,760 |
|
|
206,779 |
| ||
| |
|
|
|
|
| |||
| Cash flows from investing activities: |
||||||||
| Capital expenditures |
|
(4,148 |
) |
|
(16,528 |
) | ||
| Business acquisitions, net of cash acquired |
|
|
|
|
(104,338 |
) | ||
| |
|
|
|
|
| |||
| Net cash used in investing activities |
|
(4,148 |
) |
|
(120,866 |
) | ||
| |
|
|
|
|
| |||
| Cash flows from financing activities: |
||||||||
| Borrowings under revolver |
|
|
|
|
8,000 |
| ||
| Repayments of revolver |
||||||||