SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2002
Commission file number 0-23940
ALTERNATIVE RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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38-2791069 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
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600 Hart Road, Suite 300, Barrington, IL |
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60010 |
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(Address of principal executive offices) |
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(Zip code) |
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(847) 381-6701 |
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(Registrant’s telephone number, including area code) |
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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
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
17,702,819 shares of Common Stock outstanding as of November 04, 2002.
ALTERNATIVE RESOURCES CORPORATION
FORM 10-Q
INDEX
2
PART I - FINANCIAL INFORMATION
Item 1. - Financial Statements
ALTERNATIVE RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
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December
31, |
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September
30, |
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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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$ |
127 |
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$ |
7 |
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Trade accounts receivable, net of allowance for doubtful accounts |
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36,489 |
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34,320 |
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Prepaid expenses |
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2,091 |
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1,555 |
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Income taxes receivable |
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1,497 |
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3,035 |
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Other receivables |
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234 |
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262 |
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Total current assets |
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40,438 |
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39,179 |
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Property and equipment: |
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Office equipment |
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8,270 |
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8,304 |
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Furniture and fixtures |
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2,389 |
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2,389 |
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Software |
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19,355 |
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19,650 |
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Leasehold improvements |
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1,972 |
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2,014 |
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31,986 |
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32,357 |
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Less accumulated depreciation and amortization |
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(17,394 |
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(20,595 |
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Net property and equipment |
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14,592 |
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11,762 |
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Other assets: |
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Goodwill, net of amortization of $2,727 |
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2,723 |
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2,723 |
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Other assets |
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1,639 |
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2,487 |
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Total other assets |
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4,362 |
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5,210 |
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Total assets |
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$ |
59,392 |
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$ |
56,151 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Cash overdraft |
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$ |
4,404 |
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$ |
2,294 |
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Accounts payable |
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12,883 |
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11,169 |
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Payroll and related expenses |
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7,861 |
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6,744 |
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Accrued expenses |
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2,350 |
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8,252 |
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Total current liabilities |
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27,498 |
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28,459 |
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Long-term debt |
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26,877 |
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27,050 |
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Other liabilities |
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358 |
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359 |
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Total liabilities |
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54,733 |
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55,868 |
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Stockholders’ equity: |
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Preferred stock, $.01 par value, 1,000,000 shares authorized; none issued and outstanding |
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— |
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— |
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Common stock, $.01 par value, 50,000,000 shares authorized; 17,556,569 and 17,702,819 shares issued at December 31, 2001 and September 30, 2002, respectively |
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176 |
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178 |
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Additional paid-in capital |
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27,508 |
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30,561 |
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Deferred compensation |
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(97 |
) |
— |
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Accumulated other comprehensive loss |
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(44 |
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(48 |
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Accumulated deficit |
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(18,087 |
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(25,611 |
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9,456 |
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5,080 |
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Less: Treasury stock, at cost, 585,000 shares |
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(4,797 |
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(4,797 |
) |
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Total stockholders’ equity |
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4,659 |
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283 |
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Total liabilities and stockholders’ equity |
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$ |
59,392 |
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$ |
56,151 |
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See accompanying Notes to Consolidated Financial Statements
3
ALTERNATIVE RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
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Three
Months |
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Nine
Months |
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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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$ |
48,509 |
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$ |
40,379 |
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$ |
162,943 |
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$ |
119,541 |
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Cost of services |
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34,423 |
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29,388 |
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116,749 |
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86,554 |
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Gross profit |
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14,086 |
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10,991 |
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46,194 |
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32,987 |
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Operating expenses: |
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Selling, general and administrative expenses |
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12,520 |
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10,542 |
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41,576 |
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31,904 |
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Depreciation and amortization |
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1,294 |
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997 |
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4,132 |
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3,201 |
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Restructuring and other charges |
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— |
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4,650 |
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— |
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