SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 10-Q
(Mark One)
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[X] |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2003
OR
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[ ] |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ____ to _____
Commission file number 0 - 26728
Talk America Holdings, Inc.
(Exact name of registrant as specified in its charter)
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Delaware
(State of incorporation) |
23-2827736
(I.R.S. Employer Identification No.) |
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12020 Sunrise Valley Drive, Suite 250, Reston, Virginia
(Address of principal executive offices) |
20191
(Zip Code) |
(703) 391-7500
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes X No___
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
Yes X No___
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
26,407,864 shares of Common Stock, par value of $0.01 per share, were issued and outstanding as of November 10, 2003.
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TALK AMERICA HOLDINGS, INC. AND SUBSIDIARIES
Index
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PART I - FINANCIAL INFORMATION |
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Item 1. Consolidated Financial Statements |
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Item 4. Controls and Procedures |
20 |
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PART II - OTHER INFORMATION |
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Item 6. Exhibits and Reports on Form 8-K |
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(a) Exhibits |
21 |
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21 |
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PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
TALK AMERICA HOLDINGS, INC. AND SUBSIDIARIES
(In thousands, except for per share data)
(Unaudited)
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Three Months Ended
September 30, |
Nine Months Ended
September 30, | |||||||||||
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2003 |
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2002 |
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2003 |
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2002 |
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Sales |
$ |
99,929 |
$ |
79,133 |
$ |
281,520 |
$ |
236,253 |
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Costs and expenses: |
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Network and line costs |
46,033 |
37,792 |
133,185 |
115,663 |
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General and administrative expenses |
14,994 |
11,958 |
41,652 |
40,166 |
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Provision for doubtful accounts |
3,444 |
2,190 |
8,561 |
8,998 |
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Sales and marketing expenses |
13,388 |
6,829 |
33,159 |
19,637 |
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Depreciation and amortization |
4,450 |
4,611 |
13,137 |
13,483 |
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Total costs and expenses |
82,309 |
63,380 |
229,694 |
197,947 |
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Operating income |
17,620 |
15,753 |
51,826 |
38,306 |
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Other income (expense): |
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Interest income |
42 |
299 |
337 |
482 |
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Interest expense |
(1,560 |
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(2,568 |
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(6,066 |
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(6,941 |
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Other income (expense), net |
4 |
(106 |
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2,469 |
(922 |
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Income before provision for income taxes |
16,106 |
13,378 |
48,566 |
30,925 |
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Provision for income taxes (benefit) |
(35,460 |
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-- |
(22,801 |
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-- |
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Net income |
$ |
51,566 |
$ |
13,378 |
$ |
71,367 |
30,925 |
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Income per share – Basic: |
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Net income per share |
$ |
1.96 |
$ |
0.49 |
$ |
2.71 |
$ |
1.14 |
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Weighted average common shares outstanding |
26,367 |
27,243 |
26,325 |
27,217 |
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Income per share – Diluted: |
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Net income per share |
$ |
1.74 |
$ |
0.42 |
$ |
2.45 |
$ |
1.00 |
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Weighted average common and common equivalent shares outstanding |
29,761 |
32,091 |
29,337 |
30,975 |
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See accompanying notes to consolidated financial statements.
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TALK AMERICA HOLDINGS, INC. AND SUBSIDIARIES
(In thousands, except for share and per share data)
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September 30, |
December 31, |
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2003 |
2002 |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ |
35,132 |
$ |
33,588 |
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Accounts receivable, trade (net of allowance for uncollectible accounts of $9,483
and $7,821 at September 30, 2003 and December 31, 2002, respectively) |
36,777 |
27,843 |
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Deferred income taxes |
20,703 |
17,500 |
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Prepaid expenses and other current assets |
2,932 |
2,330 |
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Total current assets |
95,544 |
81,261 |
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Property and equipment, net |
65,860 |
66,915 |
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Goodwill and intangibles, net |
24,748 |
26,882 |
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Deferred income taxes |
44,112 |
4,800 |
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Other assets |
7,488 |
7,653 |
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$ |
237,752 |
$ |
187,511 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
$ |
32,959 |
$ |
30,588 |
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Sales, use and excise taxes |
13,803 |
11,439 |
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Deferred revenue |
9,797 |
6,480 |
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Other current liabilities |
5,281 |
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