SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 250549
FORM 10-Q
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QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTERLY PERIOD ENDED JUNE 29, 2003. |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Commission File Number 001-31299 |
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MEDICAL STAFFING NETWORK HOLDINGS, INC.
(Exact Name of Registrant as Specified in its Charter)
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Delaware |
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65-0865171 |
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(State or other jurisdiction |
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(I.R.S. Employer Identification No.) |
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901
Yamato Road |
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(Address of principal
executive offices) |
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(561) 322-1300 |
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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, and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2) of the Exchange Act). Yes ý No o
The number of shares of shares outstanding of each class of the issuer’s common stock, as of August 8, 2003: 30,193,930 shares Common Stock, par value $0.01 par value.
MEDICAL STAFFING NETWORK HOLDINGS, INC.
INDEX
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PART I - FINANCIAL INFORMATION
ITEM 1. - FINANCIAL STATEMENTS
MEDICAL STAFFING NETWORK HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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June 29, 2003 |
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Dec. 29, 2002 |
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(unaudited) |
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(in thousands, except per share amounts) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
4,883 |
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$ |
4,595 |
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Accounts receivable, net of allowance for doubtful accounts of $3,118 and $2,757 at June 29, 2003 and December 29, 2002, respectively |
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92,126 |
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93,780 |
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Prepaid expenses |
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6,494 |
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5,363 |
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Other current assets |
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4,497 |
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4,858 |
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Total current assets |
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108,000 |
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108,596 |
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Furniture and equipment, net |
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13,188 |
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12,643 |
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Goodwill, net of accumulated amortization of $8,545 at June 29, 2003 and December 29, 2002, respectively |
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124,792 |
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114,437 |
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Intangible assets, net of accumulated amortization of $847 and $521 at June 29, 2003 and December 29, 2002, respectively |
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3,514 |
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3,840 |
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Other assets |
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8,328 |
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8,567 |
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Total assets |
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$ |
257,822 |
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$ |
248,083 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
2,669 |
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$ |
5,149 |
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Accrued payroll and related liabilities |
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8,599 |
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9,366 |
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Other current liabilities |
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2,570 |
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3,105 |
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Current portion of long-term debt |
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13,283 |
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8,775 |
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Current portion of capital lease obligations |
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1,085 |
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1,055 |
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Total current liabilities |
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28,206 |
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27,450 |
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Long-term debt, net of current portion |
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71,119 |
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69,225 |
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Capital lease obligations, net of current portion |
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1,031 |
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1,343 |
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Other liabilities |
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5,928 |
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4,397 |
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Total liabilities |
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106,284 |
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102,415 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Common stock, $0.01 par value, 75,000 authorized: 30,194 and 30,119 issued and outstanding at June 29, 2003 and December 29, 2002, respectively |
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302 |
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301 |
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Additional paid-in-capital |
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284,150 |
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283,848 |
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Accumulated other comprehensive loss, net of taxes |
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(79 |
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(105 |
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Accumulated deficit |
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(132,835 |
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(138,376 |
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Total stockholders’ equity |
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151,538 |
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145,668 |
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Total liabilities and stockholders’ equity |
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$ |
257,822 |
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248,083 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
MEDICAL STAFFING NETWORK HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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June 29, |
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June 30, |
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June 29, |
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June 30, |
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(in thousands, except per share amounts) |
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Service revenues |
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$ |
137,455 |
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$ |
114,126 |
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$ |
281,468 |
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$ |
216,055 |
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Cost of services rendered |
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107,963 |
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85,137 |
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217,405 |
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161,117 |
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Gross profit |
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29,492 |
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28,989 |
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64,063 |
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54,938 |
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Operating expenses: |
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Selling, general and administrative |
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22,230 |
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15,960 |
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42,871 |
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30,825 |
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Corporate and administrative |
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3,089 |
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1,781 |
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5,388 |
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3,447 |
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Depreciation and amortization |
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1,701 |
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991 |
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3,325 |
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1,843 |
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Income from operations |
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2,472 |
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10,257 |
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12,479 |
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18,823 |
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Interest expense, net |
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1,243 |
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1,619 |
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2,402 |
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5,659 |
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Income before provision for income taxes and discontinued operations |
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