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 |
33-0832424 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) |
| Part IFinancial Information | ||||
| Item 1. |
3 | |||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| 7 | ||||
| Item 2. |
9 | |||
| Item 3. |
20 | |||
| Item 4. |
20 | |||
| Part IIOther Information | ||||
| Item 1. |
21 | |||
| Item 2. |
21 | |||
| Item 3. |
21 | |||
| Item 4. |
21 | |||
| Item 5. |
21 | |||
| Item 6. |
21 | |||
| 22 | ||||
| November 30, 2002 |
May 31, 2002 |
|||||||
| (unaudited) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
44,129,000 |
|
$ |
31,745,000 |
| ||
| Trade accounts receivable, net of allowance for doubtful accounts of $2,378,000 and $2,157,000 as of November 30, 2002
and May 31, 2002, respectively |
|
23,764,000 |
|
|
19,961,000 |
| ||
| Prepaid expenses and other current assets |
|
1,185,000 |
|
|
1,607,000 |
| ||
| Prepaid income taxes |
|
788,000 |
|
|
3,505,000 |
| ||
| Deferred income taxes |
|
2,560,000 |
|
|
2,560,000 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
72,426,000 |
|
|
59,378,000 |
| ||
| Investments in marketable securities |
|
12,000,000 |
|
|
24,000,000 |
| ||
| Intangible assets, net |
|
48,945,000 |
|
|
41,372,000 |
| ||
| Property and equipment, net |
|
4,672,000 |
|
|
4,885,000 |
| ||
| Other assets |
|
1,912,000 |
|
|
1,842,000 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
139,955,000 |
|
$ |
131,477,000 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable and accrued expenses |
$ |
2,768,000 |
|
$ |
2,401,000 |
| ||
| Accrued salaries and related obligations |
|
12,110,000 |
|
|
13,152,000 |
| ||
| Other liabilities |
|
666,000 |
|
|
690,000 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
15,544,000 |
|
|
16,243,000 |
| ||
| Deferred income taxes |
|
1,763,000 |
|
|
1,763,000 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
17,307,000 |
|
|
18,006,000 |
| ||
| |
|
|
|
|
| |||
| Commitments and contingencies |
||||||||
| Stockholders equity: |
||||||||
| Preferred stock, $0.01 par value, 5,000,000 shares authorized; zero shares issued and outstanding
|
||||||||
| Common stock, $0.01 par value, 35,000,000 shares authorized; 21,956,000 and 21,661,000 shares issued and outstanding as
of November 30, 2002 and May 31, 2002, respectively |
|
220,000 |
|
|
216,000 |
| ||
| Additional paid-in capital |
|
82,995,000 |
|
|
79,991,000 |
| ||
| Deferred stock compensation |
|
(635,000 |
) |
|
(909,000 |
) | ||
| Accumulated other comprehensive gain (loss) |
|
3,000 |
|
|
(51,000 |
) | ||
| Notes receivable from stockholders |
|
(55,000 |
) |
|
(109,000 |
) | ||
| Retained earnings |
|
40,121,000 |
|
|
34,334,000 |
| ||
| Treasury stock at cost, 122,000 shares at November 30, 2002 and 101,000 shares at May 31, 2002 |
|
(1,000 |
) |
|
(1,000 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
122,648,000 |
|
|
113,471,000 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
139,955,000 |
|
$ |
131,477,000 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended |
Six Months Ended |
|||||||||||||||
| November 30, 2002 |
November 30, 2001 |
November 30, 2002 |
November 30, 2001 |
|||||||||||||
| (unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
| Revenue |
$ |
50,209,000 |
|
$ |
46,099,000 |
|
$ |
93,737,000 |
|
$ |
95,439,000 |
| ||||
| Direct cost of services, primarily payroll and related taxes for professional services employees |
|
29,909,000 |
|
|
27,716,000 |
|
|
56,210,000 |
|
|
56,973,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
20,300,000 |
|
|
18,383,000 |
|
|
37,527,000 |
|
|
38,466,000 |
| ||||
| Selling, general and administrative expenses |
|
14,526,000 |
|
|
12,348,000 |
|
|
27,544,000 |
|
|
25,223,000 |
| ||||
| Amortization of intangible assets |
|
126,000 |
|
|
31,000 |
|
|
157,000 |
|
|
62,000 |
| ||||
| Depreciation expense |
|
312,000 |
|
|
287,000 |
|
|
627,000 |
|
|
544,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income from operations |
|
5,336,000 |
|
|
5,717,000 |
|
|
9,199,000 |
|
|
12,637,000 |
| ||||
| Interest income |
|
(270,000 |
) |
|
(309,000 |
) |
|
(608,000 |
) |
|
(591,000 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income before provision for income taxes |
|
5,606,000 |
|
|
6,026,000 |
|
|
9,807,000 |
|
|
13,228,000 |
| ||||
| Provision for income taxes |
|
2,298,000 |
|
|
2,410,000 |
|
|
4,020,000 |
|
|
5,291,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income |
$ |
3,308,000 |
|
$ |
3,616,000 |
|
$ |
5,787,000 |
|
$ |
7,937,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income per common share: |
||||||||||||||||
| Basic |
$ |
0.15 |
|
$ |
0.17 |
|
$ |
0.27 |
|
$ |
0.38 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Diluted |
$ |
0.15 |
|
$ |
0.16 |
|
$ |
0.25 |
|
$ |
0.35 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Weighted average common shares outstanding: |
||||||||||||||||
| Basic |
|
21,743,000 |
|
|
21,200,000 |
|
|
21,679,000 |
|
|
21,028,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Diluted |
|
22,651,000 |
|
|
22,702,000 |
|
|
22,728,000 |
|
|
22,725,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Six Months Ended |
||||||||
| November 30, 2002 |
November 30, 2001 |
|||||||
| (unaudited) |
(unaudited) |
|||||||
| COMMON STOCKSHARES: |
||||||||
| Balance at beginning of period |
|
21,661,000 |
|
|
20,735,000 |
| ||
| Public offering of common stock |
|
230,000 |
| |||||
| Exercise of stock options |
|
135,000 |
|
|
293,000 |
| ||
| Issuance of common stock for the acquisition of The Procurement Centre |
|
116,000 |
|
|||||
| Issuance of common stock under Employee Stock Purchase Plan |
|
44,000 |
|
|
43,000 |
| ||
| |
|
|
|
|
| |||
| Balance at end of period |
|
21,956,000 |
|
|
21,301,000 |
| ||
| |
|
|
|
|
| |||
| COMMON STOCKPAR VALUE: |
||||||||
| Balance at beginning of period |
$ |
216,000 |
|
$ |
207,000 |
| ||
| Public offering of common stock |
|
2,000 |
| |||||
| Exercise of stock options |
|
2,000 |
|
|
3,000 |
| ||
| Issuance of common stock for the acquisition of The Procurement Centre |
|
1,000 |
|
|||||
| Issuance of common stock under Employee Stock Purchase Plan |
|
1,000 |
|
|
1,000 |
| ||
| |
|
|
|
|
| |||
| Balance at end of period |
$ |
220,000 |
|
$ |
213,000 |
| ||
| |
|
|
|
|
| |||
| ADDITIONAL PAID-IN CAPITAL: |
||||||||
| Balance at beginning of period |
$ |
79,991,000 |
|
$ |
66,507,000 |
| ||
| Public offering of common stock |
|
4,552,000 |
| |||||
| Cost of stock offering |
|
(793,000 |
) | |||||
| Exercise of stock options |
|
633,000 |
|
|
1,489,000 |
| ||
| Issuance of common stock for the acquisition of The Procurement Centre |
|
1,503,000 |
|
|||||