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 (State of
Incorporation) |
98-0177556 (I.R.S. Employer
Identification No.) |
| Page No. | ||||
| PART I. FINANCIAL INFORMATION |
||||
| Item 1. |
Financial Statements (unaudited): |
|||
| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
12 | |||
| Item 3. |
27 | |||
| Item 4. |
27 | |||
| PART II. OTHER INFORMATION |
||||
| Item 1. |
28 | |||
| Item 2. |
28 | |||
| Item 3. |
28 | |||
| Item 4. |
28 | |||
| Item 5. |
28 | |||
| Item 6. |
28 | |||
| 29 | ||||
| 30 | ||||
| 32 | ||||
| Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| (In thousands, except per share amounts) |
||||||||||||||||
| Sales |
$ |
118,189 |
|
$ |
107,505 |
|
$ |
345,339 |
|
$ |
349,148 |
| ||||
| Cost of sales |
|
33,449 |
|
|
27,941 |
|
|
93,534 |
|
|
95,888 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
84,740 |
|
|
79,564 |
|
|
251,805 |
|
|
253,260 |
| ||||
| Selling, general and administrative expenses |
|
51,564 |
|
|
57,792 |
|
|
156,916 |
|
|
180,229 |
| ||||
| Depreciation |
|
15,073 |
|
|
14,676 |
|
|
46,137 |
|
|
42,168 |
| ||||
| Amortization |
|
3,070 |
|
|
18,546 |
|
|
13,689 |
|
|
55,816 |
| ||||
| Loss on sale of a business |
|
|
|
|
|
|
|
812 |
|
|
|
| ||||
| Integration and restructuring costs and loss on impairment of assets |
|
|
|
|
4,776 |
|
|
|
|
|
18,094 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) from operations |
|
15,033 |
|
|
(16,226 |
) |
|
34,251 |
|
|
(43,047 |
) | ||||
| Interest expense |
|
(3,505 |
) |
|
(4,244 |
) |
|
(11,660 |
) |
|
(12,934 |
) | ||||
| Interest income |
|
515 |
|
|
540 |
|
|
1,078 |
|
|
1,729 |
| ||||
| Exchange losses, net |
|
(409 |
) |
|
(618 |
) |
|
(144 |
) |
|
(1,315 |
) | ||||
| Other expense, net |
|
(25 |
) |
|
(227 |
) |
|
(30 |
) |
|
(84 |
) | ||||
| Loss on impairment of investments |
|
|
|
|
|
|
|
|
|
|
(4,224 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) before income taxes |
|
11,609 |
|
|
(20,775 |
) |
|
23,495 |
|
|
(59,875 |
) | ||||
| Income tax (expense) benefit |
|
(4,793 |
) |
|
2,541 |
|
|
(9,526 |
) |
|
3,350 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) |
$ |
6,816 |
|
$ |
(18,234 |
) |
$ |
13,969 |
|
$ |
(56,525 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Earnings (loss) per share: |
||||||||||||||||
| Basic |
$ |
0.13 |
|
$ |
(0.35 |
) |
$ |
0.26 |
|
$ |
(1.09 |
) | ||||
| Diluted |
|
0.13 |
|
|
(0.35 |
) |
|
0.25 |
|
|
(1.09 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Weighted-average shares outstanding: |
||||||||||||||||
| Basic |
|
53,525 |
|
|
51,870 |
|
|
52,871 |
|
|
51,653 |
| ||||
| Diluted |
|
54,217 |
|
|
51,870 |
|
|
55,207 |
|
|
51,653 |
| ||||
| September 30, 2002 |
December 31, 2001 |
|||||||
| (In thousands, except per share amounts) |
||||||||
| ASSETS |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ |
67,243 |
|
$ |
46,173 |
| ||
| Short-term investments |
|
28,476 |
|
|
|
| ||
| Accounts receivable, net |
|
76,864 |
|
|
71,162 |
| ||
| Inventories |
|
2,249 |
|
|
3,404 |
| ||
| Deferred catalog costs |
|
|
|
|
8,253 |
| ||
| Prepaid expenses |
|
8,573 |
|
|
7,199 |
| ||
| Deferred income taxes, net |
|
9,467 |
|
|
9,430 |
| ||
| Other current assets |
|
5,149 |
|
|
5,020 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
198,021 |
|
|
150,641 |
| ||
| Property and equipment, net |
|
133,359 |
|
|
147,653 |
| ||
| Goodwill |
|
603,011 |
|
|
600,428 |
| ||
| Identifiable intangible assets, net |
|
30,507 |
|
|
36,031 |
| ||
| Deferred income taxes, net |
|
54,908 |
|
|
55,638 |
| ||
| Other long-term assets |
|
3,760 |
|
|
2,690 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
1,023,566 |
|
$ |
993,081 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities |
||||||||
| Accounts payable |
$ |
51,840 |
|
$ |
50,913 |
| ||
| Accrued expenses |
|
45,632 |
|
|
52,011 |
| ||
| Income taxes payable |
|
14,617 |
|
|
14,498 |
| ||
| Current portion of long-term debt |
|
33 |
|
|
19,944 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
112,122 |
|
|
137,366 |
| ||
| Long-term debt |
|
258,682 |
|
|
256,215 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
370,804 |
|
|
393,581 |
| ||
| |
|
|
|
|
| |||
| Commitments and contingencies |
||||||||
| Stockholders equity |
||||||||
| Preferred stock, $0.01 per share par value, 5,000 shares authorized, no shares outstanding |
|
|
|
|
|
| ||
| Common stock, $0.01 per share par value, 100,000 shares authorized, 53,484 outstanding at September 30, 2002 and 51,924
outstanding at December 31, 2001 |
|
534 |
|
|
519 |
| ||
| Exchangeable preferred stock, no par value, 5,000 shares authorized, 45 outstanding at September 30, 2002 and 85
outstanding at December 31, 2001 |
|
1 |
|
|
1 |
| ||
| Additional paid-in capital |
|
1,000,384 |
|
|
969,134 |
| ||
| Accumulated deficit |
|
(346,769 |
) |
|
(360,738 |
) | ||
| Accumulated other comprehensive loss |
|
(1,388 |
) |
|
(9,416 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
652,762 |
|
|
599,500 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
1,023,566 |
|
$ |
993,081 |
| ||
| |
|
|
|
|
| |||
| Number of shares of
common stock $0.01 par value |
Number of shares of exchangeable preferred stock no par value |
Common stock |
Exchangeable preferred stock |
Additional paid-in capital |
Accumulated deficit |
Accumulated other comprehensive loss |
Total | ||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||
| Balance at December 31, 2001 |
51,924 |
85 |
|
$ |
519 |
$ |
1 |
$ |
969,134 |
$ |
(360,738 |
) |
$ |
(9,416 |
) |
$ |
599,500 | ||||||||
| Net income |
|
|
|
|
|
|
|
|
|
|
13,969 |
|
|
|
|
|
13,969 | ||||||||
| Translation adjustment |
|
|
|
|
|
||||||||||||||||||||