SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
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(Mark One) |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 28, 2002,
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 0-23651
First Consulting Group, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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95-3539020 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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111 W. Ocean Blvd. 4th Floor, Long Beach, CA 90802 |
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(Address of principal executive offices including zip code) |
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(562) 624-5200 |
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(Registrant’s telephone number, including area code) |
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(Former name, former address and former fiscal year, if changed since last report)
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 the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Common Stock, $.001 par value |
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24,070,120 |
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(Class) |
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(Outstanding at July 26, 2002) |
First Consulting Group, Inc.
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Consolidated Balance Sheets as of June 28, 2002 and December 28, 2001 |
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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2
Item 1. Financial Statements and Notes (Unaudited).
First Consulting Group, Inc. and Subsidiaries
(in thousands)
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June 28, |
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December
28, |
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(unaudited) |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
38,354 |
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$ |
32,499 |
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Short-term investments |
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18,712 |
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19,410 |
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Accounts receivable, less allowance of $2,270 and $2,740 in the periods ended June 28, 2002 and December 28, 2001, respectively |
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29,586 |
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34,657 |
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Unbilled receivables |
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18,020 |
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13,963 |
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Deferred income taxes, net |
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7,664 |
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7,834 |
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Prepaid expenses and other current assets |
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3,358 |
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1,571 |
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Total current assets |
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115,694 |
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109,934 |
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Notes receivable-stockholders |
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771 |
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753 |
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Long-term investments |
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2,200 |
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1,200 |
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Property and equipment |
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Furniture, equipment, and leasehold improvements |
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7,656 |
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8,033 |
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Information systems equipment |
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22,114 |
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26,838 |
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29,770 |
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34,871 |
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Less accumulated depreciation and amortization |
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20,159 |
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24,237 |
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9,611 |
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10,634 |
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Other assets |
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Executive benefit trust |
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6,011 |
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6,246 |
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Unbilled long term receivables |
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9,207 |
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10,250 |
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Deferred income taxes |
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2,550 |
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2,433 |
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Goodwill, net |
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3,468 |
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3,587 |
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Other |
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371 |
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392 |
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21,607 |
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22,908 |
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Total assets |
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$ |
149,883 |
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$ |
145,429 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
2,406 |
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$ |
1,723 |
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Accrued liabilities |
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10,580 |
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11,284 |
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Accrued restructuring |
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10,323 |
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6,781 |
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Accrued vacation |
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7,619 |
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6,453 |
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Accrued incentive compensation |
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1,645 |
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4,280 |
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Customer advances |
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6,753 |
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5,259 |
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Total current liabilities |
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39,326 |
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35,780 |
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Non-current liabilities |
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Supplemental executive retirement plan |
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6,842 |
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6,510 |
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Minority interest |
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1,561 |
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863 |
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Total non-current liabilities |
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8,403 |
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7,373 |
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Commitments and contingencies |
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— |
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— |
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Stockholders’ equity |
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Preferred Stock, $.001 par value; 9,500,000 shares authorized, no shares issued and outstanding |
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— |
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Series A Junior Participating Preferred Stock, $.001 par value; 500,000 shares authorized, no shares issued and outstanding |
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— |
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Common Stock, $.001 par value; 50,000,000 shares authorized, 23,978,610 shares issued and outstanding at June 28, 2002 and 23,715,719 shares issued and outstanding at December 28, 2001 |
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24 |
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24 |
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Additional paid-in capital |
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91,788 |
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90,215 |
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Retained earnings |
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14,046 |
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15,895 |
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Deferred compensation-stock incentive agreements |
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(1,015 |
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(1,134 |
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Notes receivable-stockholders |
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(1,730 |
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(1,780 |
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Accumulated other comprehensive loss |
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(959 |
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(944 |
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Total stockholders’ equity |
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102,154 |
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102,276 |
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Total liabilities and stockholders’ equity |
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$ |
149,883 |
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$ |
145,429 |
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See accompanying notes.
3
First Consulting Group, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
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Three Months Ended |
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Six Months Ended |
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