SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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Quarterly report pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 |
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for the quarterly period ended September 30, 2002, |
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or |
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Transition report pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 |
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for the transition period from to |
Commission file number 0-27444
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SOURCECORP, INCORPORATED |
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(Exact name of registrant as specified in its charter) |
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DELAWARE |
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75-2560895 |
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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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3232 MCKINNEY AVENUE, SUITE 1000 |
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75204 |
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(Address of principal executive offices) |
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(Zip code) |
REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE: (214) 740 - 6500
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 ý No o
As of October 31, 2002, 17,495,664 shares of the registrant’s Common Stock, $.01 par value per share, were outstanding.
SOURCECORP, INCORPORATED AND SUBSIDIARIES
FORM 10-Q FOR THE PERIOD ENDED SEPTEMBER 30, 2002
INDEX
2
3
SOURCECORP, INCORPORATED AND SUBSIDIARIES
(IN THOUSANDS, EXCEPT SHARE DATA)
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December 31, |
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September 30, 2002 |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
7,182 |
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$ |
5,976 |
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Accounts and notes receivable, less allowance for doubtful accounts of $19,888 and $12,114, respectively |
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88,547 |
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87,486 |
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Inventories |
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2,587 |
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3,005 |
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Deferred income taxes |
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9,805 |
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9,834 |
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Prepaid expenses and other current assets |
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6,412 |
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3,995 |
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Total current assets |
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114,533 |
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110,296 |
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PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $40,863 and $48,838, respectively |
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41,942 |
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40,862 |
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GOODWILL, net of amortization of $22,356 |
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298,519 |
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315,031 |
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INTANGIBLES, net of amortization of $0 and $266, respectively |
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— |
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4,174 |
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OTHER NONCURRENT ASSETS |
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8,077 |
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9,255 |
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Total assets |
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$ |
463,071 |
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$ |
479,618 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable and accrued liabilities |
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$ |
51,087 |
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$ |
67,471 |
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Current maturities of long-term obligations |
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324 |
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208 |
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Income tax payable |
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4,588 |
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107 |
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Total current liabilities |
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55,999 |
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67,786 |
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LONG-TERM OBLIGATIONS, net of current maturities |
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116,055 |
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100,310 |
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DEFERRED INCOME TAX |
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1,839 |
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8,380 |
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OTHER LONG-TERM OBLIGATIONS |
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18,005 |
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6,732 |
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Total liabilities |
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191,898 |
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183,208 |
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS’ EQUITY: |
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Preferred stock, $.01 par value, 1,000,000 shares authorized, no shares issued and outstanding |
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— |
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— |
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Common stock, $.01 par value, 26,000,000 shares authorized, 17,341,674 and 17,455,128 shares issued and outstanding at December 31, 2001 and September 30, 2002, respectively |
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174 |
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176 |
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Additional paid-in-capital |
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204,086 |
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207,538 |
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Accumulated other comprehensive loss |
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(1,242 |
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(630 |
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Retained earnings |
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69,137 |
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90,308 |
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272,155 |
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297,392 |
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Less — Treasury stock, at cost, 56,028 shares at December 31, 2001 and September 30, 2002 |
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(982 |
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(982 |
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Total stockholders’ equity |
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271,173 |
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296,410 |
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Total liabilities and stockholders’ equity |
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$ |
463,071 |
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479,618 |
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The accompanying notes are an integral part of these consolidated financial statements.
4
SOURCECORP, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2001 |
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2002 |
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2001 |
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2002 |
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(Unaudited) |
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(Unaudited) |
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REVENUE |
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$ |
106,239 |
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$ |
107,465 |
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$ |
354,548 |
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$ |
316,536 |
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COST OF SERVICES |
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61,554 |
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64,683 |
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210,418 |
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190,216 |
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SPECIAL CHARGES |
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— |
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417 |
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— |
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DEPRECIATION |
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3,054 |
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3,578 |
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11,203 |
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10,672 |
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Gross profit |
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41,631 |
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39,204 |
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132,510 |
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115,648 |
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
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23,380 |
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25,154 |
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78,299 |
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76,182 |
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SPECIAL CHARGES |
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(5,741 |
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62,167 |
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AMORTIZATION |
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2,454 |
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89 |
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7,506 |
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267 |
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Operating income (loss) |
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21,538 | |||||||||||