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 |
| Florida (State or other
jurisdiction of incorporation or organization) |
65-0750100 (I.R.S.
Employer Identification Number) |
| 1001 Brickell Bay Drive, Suite 3000 Miami, Florida (Address of principal executive offices) |
33131 (Zip
Code) |
| PART I |
FINANCIAL INFORMATION |
|||
| Item 1. |
Financial Statements |
|||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
9 | |||
| Item 3. |
12 | |||
| PART II |
OTHER INFORMATION |
|||
| Item 1. |
13 | |||
| Item 4. |
13 | |||
| Item 6. |
13 | |||
| 14 | ||||
| INDEX TO EXHIBITS |
15 | |||
| June 28, 2002
|
December 28, 2001 |
|||||||
| (unaudited) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
60,956 |
|
$ |
59,888 |
| ||
| Accounts receivable and unbilled revenue, net of allowance of $6,514 and $6,810 in 2002 and 2001,
respectively |
|
32,970 |
|
|
39,164 |
| ||
| Other receivables |
|
783 |
|
|
851 |
| ||
| Prepaid expenses and other current assets |
|
17,308 |
|
|
15,628 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
112,017 |
|
|
115,531 |
| ||
| Property and equipment, net |
|
18,175 |
|
|
18,468 |
| ||
| Goodwill, net |
|
46,720 |
|
|
77,920 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
176,912 |
|
$ |
211,919 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
6,207 |
|
$ |
5,187 |
| ||
| Accrued expenses and other liabilities |
|
21,146 |
|
|
27,992 |
| ||
| Media payable |
|
706 |
|
|
1,039 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
28,059 |
|
|
34,218 |
| ||
| Commitments and contingencies |
||||||||
| Shareholders equity |
||||||||
| Preferred stock, $.001 par value, 1,250,000 authorized, none issued and outstanding |
|
|
|
|
|
| ||
| Common stock, $.001 par value, authorized 125,000,000 shares; issued and outstanding: 46,970,052 shares at June 28,
2002; 45,880,118 shares at December 28, 2001 |
|
47 |
|
|
46 |
| ||
| Additional paid-in capital |
|
261,927 |
|
|
257,115 |
| ||
| Accumulated deficit |
|
(113,121 |
) |
|
(79,460 |
) | ||
| |
|
|
|
|
| |||
| Total shareholders equity |
|
148,853 |
|
|
177,701 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and shareholders equity |
$ |
176,912 |
|
$ |
211,919 |
| ||
| |
|
|
|
|
| |||
| Quarter Ended |
Six Months Ended |
|||||||||||||||
| June 28, 2002 |
June 29, 2001 |
June 28, 2002 |
June 29, 2001 |
|||||||||||||
| Revenues: |
||||||||||||||||
| Revenues before reimbursements (Net revenues) |
$ |
42,678 |
|
$ |
65,276 |
|
$ |
89,091 |
|
$ |
137,291 |
| ||||
| Reimbursements |
|
5,341 |
|
|
8,092 |
|
|
11,745 |
|
|
17,756 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenues |
|
48,019 |
|
|
73,368 |
|
|
100,836 |
|
|
155,047 |
| ||||
| Costs and expenses: |
||||||||||||||||
| Project personnel and expenses: |
||||||||||||||||
| Project personnel and expenses before reimbursable expenses |
|
30,123 |
|
|
40,668 |
|
|
62,471 |
|
|
86,049 |
| ||||
| Reimbursable expenses |
|
5,341 |
|
|
8,092 |
|
|
11,745 |
|
|
17,756 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total project personnel and expenses |
|
35,464 |
|
|
48,760 |
|
|
74,216 |
|
|
103,805 |
| ||||
| Selling, general and administrative expenses |
|
15,255 |
|
|
23,600 |
|
|
30,983 |
|
|
48,001 |
| ||||
| Stock compensation expense |
|
|
|
|
1,613 |
|
|
|
|
|
4,644 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total costs and operating expenses |
|
50,719 |
|
|
73,973 |
|
|
105,199 |
|
|
156,450 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss from operations |
|
(2,700 |
) |
|
(605 |
) |
|
(4,363 |
) |
|
(1,403 |
) | ||||
| Other income (expense): |
||||||||||||||||
| Interest income |
|
184 |
|
|
259 |
|
|
354 |
|
|
735 |
| ||||
| Interest expense |
|
(47 |
) |
|
(42 |
) |
|
(93 |
) |
|
(84 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss before income taxes |
|
(2,563 |
) |
|
(388 |
) |
|
(4,102 |
) |
|
(752 |
) | ||||
| Income taxes |
|
(1,025 |
) |
|
(453 |
) |
|
(1,641 |
) |
|
(617 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) before cumulative effect of change in accounting principle |
|
(1,538 |
) |
|
65 |
|
|
(2,461 |
) |
|
(135 |
) | ||||
| Cumulative effect of change in accounting principle |
|
|
|
|
|
|
|
(31,200 |
) |
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) |
$ |
(1,538 |
) |
$ |
65 |
|
$ |
(33,661 |
) |
$ |
(135 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Basic net income (loss) per common share: |
||||||||||||||||
| Income (loss) before cumulative effect of change in accounting principle |
$ |
(0.03 |
) |
$ |
|
|
$ |
(0.05 |
) |
$ |
|
| ||||
| Cumulative effect of change in accounting principle |
$ |
|
|
$ |
|
|
$ |
(0.68 |
) |
$ |
|
| ||||
| Net income (loss) per common share |
$ |
(0.03 |
) |
$ |
|
|
$ |
(0.73 |
) |
$ |
|
| ||||
| Weighted average common shares outstanding |
|
46,547 |
|
|
44,030 |
|
|
46,207 |
|
|
43,106 |
| ||||
| Diluted net income (loss) per common share: |
||||||||||||||||
| Income (loss) before cumulative effect of change in accounting principle |
$ |
(0.03 |
) |
$ |
|
|
$ |
(0.05 |
) |
$ |
|
| ||||
| Cumulative effect of change in accounting principle |
$ |
|
|
$ |
|
|
$ |
(0.68 |
) |
$ |
|
| ||||
| Net income (loss) per common share |
$ |
(0.03 |
) |
$ |
|
|
$ |
(0.73 |
) |
$ |
|
| ||||
| Weighted average common and common equivalent shares outstanding |
|
46,547 |
|
|
46,214 |
|
|
46,207 |
|
|
43,106 |
| ||||
| Six Months Ended |
||||||||
| June 28, 2002
|
June 29, 2001
|
|||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ |
(33,661 |
) |
$ |
(135 |
) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Cumulative effect of change in accounting principle |
|
31,200 |
|
|
|
| ||
| Non-cash compensation expense |
|
|
|
|
4,644 |
| ||
| Depreciation and amortization |
|
2,618 |
|
|
6,035 |
| ||
| Provision for doubtful accounts |
|
58 |
|
|
2,732 |
| ||
| Deferred income taxes |
|
1,579 |
|
|
(83 |
) | ||
| Changes in assets and liabilities, net of effects from acquisitions: |
||||||||
| Decrease in accounts receivable and unbilled revenue |
|
6,136 |
|
|
4,694 |
| ||
| Decrease in other receivables |
|
68 |
|
|
2,585 |
| ||
| Increase in prepaid expenses and other assets |
|
(2,074 |
) |
|
(1,440 |
) | ||
| Increase (decrease) in accounts payable |
|
1,020 |
|
|
(4,054 |
) | ||
| Decrease in accrued expenses and other liabilities |
|
(7,529 |
) |
|
(12,616 |
) | ||
| Decrease in media pa | ||||||||