[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 |
| GEORGIA |
58-2277249 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification
No.) | |
| 1000 WILSON BLVD, STE 910 ARLINGTON, VA |
22209 | |
| (Address of principal executive offices) |
(Zip Code) | |
| Registrants telephone number, including area code (703) 528-9688 | ||
| Not Applicable Former name, former address and former fiscal year, if changed since last report. | ||
| PAGE | ||||
| PART IFINANCIAL INFORMATION |
||||
| Item 1. |
Financial Statements |
|||
| 1 | ||||
| 2 | ||||
| 3 | ||||
| 4 | ||||
| Item 2. |
8 | |||
| Item 3. |
15 | |||
| PART IIOTHER INFORMATION |
||||
| Item 4. |
16 | |||
| Item 5. |
16 | |||
| Item 6. |
16 |
| June 30, 2002
|
December 31, 2001 |
|||||||
| (Unaudited) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
1,100 |
|
$ |
6,817 |
| ||
| Accounts receivable, net of allowance of $5,904 and $ 7,650 in 2002 and 2001, respectively |
|
21,117 |
|
|
16,349 |
| ||
| Unbilled services |
|
5,086 |
|
|
7,873 |
| ||
| Work in process |
|
1,239 |
|
|
1,350 |
| ||
| Reimbursable customer expenses |
|
7,061 |
|
|
5,542 |
| ||
| Prepaid expenses and other |
|
4,551 |
|
|
3,144 |
| ||
| Income taxes receivable |
|
375 |
|
|
10,997 |
| ||
| Deferred income taxes |
|
1,473 |
|
|
1,675 |
| ||
| Net current assets of discontinued operations |
|
2,856 |
|
|
1,022 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
44,858 |
|
|
54,769 |
| ||
| Property and equipment, net |
|
21,705 |
|
|
22,553 |
| ||
| Intangibles, net |
|
82,441 |
|
|
103,295 |
| ||
| Other assets |
|
437 |
|
|
341 |
| ||
| Notes receivable |
|
|
|
|
5,000 |
| ||
| Net noncurrent assets of discontinued operations |
|
30,544 |
|
|
58,725 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
179,985 |
|
$ |
244,683 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
3,143 |
|
$ |
6,465 |
| ||
| Accrued expenses |
|
13,011 |
|
|
17,426 |
| ||
| Customer deposits |
|
2,388 |
|
|
4,961 |
| ||
| Current portion of self-insurance reserves |
|
1,856 |
|
|
1,296 |
| ||
| Current portion of settlement obligation |
|
9,000 |
|
|
|
| ||
| Current portion of debt |
|
81,384 |
|
|
27,035 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
110,782 |
|
|
57,183 |
| ||
| Debt, less current portion |
|
|
|
|
77,114 |
| ||
| Self-insurance reserves, less current portion |
|
1,469 |
|
|
1,475 |
| ||
| Settlement obligations, less current portion |
|
9,000 |
|
|
18,000 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
121,251 |
|
|
153,772 |
| ||
| |
|
|
|
|
| |||
| Shareholders equity: |
||||||||
| Common stock, $.01 par value: |
||||||||
| 17,427,392 shares issued; 15,246,792 shares outstanding |
|
175 |
|
|
175 |
| ||
| Preferred stock, no par value: no shares outstanding |
|
|
|
|
|
| ||
| Paid-in capital |
|
177,011 |
|
|
177,011 |
| ||
| Accumulated deficit |
|
(98,452 |
) |
|
(66,275 |
) | ||
| Treasury stock at cost: 2,180,600 shares |
|
(20,000 |
) |
|
(20,000 |
) | ||
| |
|
|
|
|
| |||
| Total shareholders equity |
|
58,734 |
|
|
90,911 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and shareholders equity |
$ |
179,985 |
|
$ |
244,683 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended June 30, |
Six Months Ended June
30, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| Revenues |
$ |
33,714 |
|
$ |
35,381 |
|
$ |
65,930 |
|
$ |
73,254 |
| ||||
| Cost of services |
|
15,096 |
|
|
15,647 |
|
|
29,303 |
|
|
33,198 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross margin |
|
18,618 |
|
|
19,734 |
|
|
36,627 |
|
|
40,056 |
| ||||
| Costs and expenses: |
||||||||||||||||
| Operating |
|
15,665 |
|
|
15,365 |
|
|
31,381 |
|
|
32,600 |
| ||||
| Corporate general and administrative |
|
856 |
|
|
911 |
|
|
1,735 |
|
|
2,522 |
| ||||
| Depreciation and amortization |
|
1,430 |
|
|
2,255 |
|
|
2,625 |
|
|
4,375 |
| ||||
| Final PIMMS severance costs |
|
|
|
|
|
|
|
|
|
|
2,523 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Operating income (loss) |
|
667 |
|
|
1,203 |
|
|
886 |
|
|
(1,964 |
) | ||||
| Interest expense, net |
|
1,732 |
|
|
1,024 |
|
|
3,354 |
|
|
1,776 |
| ||||
| Other expense |
|
1,775 |
|
|
|
|
|
1,775 |
|
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) from continuing operations before income taxes |
|
(2,840 |
) |
|
179 |
|
|
(4,243 |
) |
|
(3,740 |
) | ||||
| Income tax provision (benefit) |
|
|
|
|
72 |
|
|
|
|
|
(1,496 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) from continuing operations |
|
(2,840 |
) |
|
107 |
|
|
(4,243 |
) |
|
(2,244 |
) | ||||
| Discontinued operations: |
||||||||||||||||
| Loss from discontinued operations, net of taxes |
|
(1,186 |
) |
|
(1,042 |
) |
|
(3,102 |
) |
|
(25 |
) | ||||
| Loss on sale of business, net of taxes |
|
(4,109 |
) |
|
|
|
|
(4,109 |
) |
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss from discontinued operations |
|
(5,295 |
) |
|
(1,042 |
) |
|
(7,211 |
) |
|
(25 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss before cumulative effect of change in accounting principle |
|
(8,135 |
) |
|
(935 |
) |
|
(11,454 |
) |
|
(2,269 |
) | ||||
| Cumulative effect of change in accounting principle |
|
|
|
|
|
|
|
(20,723 |
) |
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss |
$ |
(8,135 |
) |
$ |
(935 |
) |
$ |
(32,177 |
) |
$ |
(2,269 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Basic and diluted earnings (loss) per share: |
||||||||||||||||
| Income (loss) from continuing operations |
$ |
(0.18 |
) |
$ |
0.01 |
|
$ |
(0.28 |
) |
$ |
(0.15 |
) | ||||
| Loss from discontinued operations |
$ |
(0.35 |
) |
$ |
(0.07 |
) |
$ |
(0.47 |
) |
$ |
|
| ||||
| Cumulative effect of change in accounting principle |
$ |
|
|
$ |
|
|
$ |
(1.36 |
) |
$ |
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss |
$ |
(0.53 |
) |
$ |
(0.06 |
) |
$ |
(2.11 |
) |
$ |
(0.15 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Weighted average common and common equivalent shares: |
||||||||||||||||
| Basic |
|
15,247 |
|
|
15,255 |
|
|
15,247 |
|
|
15,320 |
| ||||