UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
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For the quarterly period ended September 28, 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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For the Transition Period From to |
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Commission file number 0-26786 |
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APAC Customer Services, Inc.
(Exact name of registrant as specified in its charter)
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Illinois |
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36-2777140 |
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(State or other jurisdiction |
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(I.R.S. Employer |
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Six Parkway North Center, Suite 400, Deerfield, Illinois 60015 |
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(Address of Principal Executive Offices, Zip Code) |
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Registrant’s telephone number, including area code: (847) 374-4980 |
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Indicate by check mark whether 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 periods 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 by check mark whether the registrant is an accelerated filer (as defined in rule 12b-2 of the Exchange Act).
Yes ý No o
There were 49,441,592 common shares, $0.01 par value per share, outstanding as of November 7, 2003.
2
Consolidated Condensed Balance Sheets
(Unaudited)
(In thousands)
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September 28, |
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December 29, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
9,709 |
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$ |
14,530 |
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Accounts receivable, net |
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48,469 |
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51,508 |
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Other current assets |
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11,048 |
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12,646 |
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Total current assets |
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69,226 |
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78,684 |
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Property and equipment, net |
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23,701 |
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25,680 |
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Goodwill |
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23,876 |
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23,876 |
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Customer relationships |
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28,493 |
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28,493 |
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Less-accumulated amortization |
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12,871 |
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11,111 |
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Customer relationships, net |
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15,622 |
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17,382 |
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Deferred taxes |
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2,702 |
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2,207 |
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Other assets |
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1,314 |
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1,565 |
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Total assets |
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$ |
136,441 |
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$ |
149,394 |
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Liabilities
and |
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Current liabilities: |
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Current maturities of long-term debt |
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$ |
581 |
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$ |
656 |
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Accounts payable |
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2,212 |
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3,627 |
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Other current liabilities |
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39,081 |
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37,034 |
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Total current liabilities |
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41,874 |
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41,317 |
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Long-term debt, less current maturities |
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12,958 |
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28,872 |
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Other liabilities |
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1,414 |
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2,778 |
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Commitments and contingencies |
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— |
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— |
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Shareholders’ equity |
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Common shares, $0.01 par value; 200,000,000 shares authorized; 49,695,699 shares issued at September 28, 2003 and December 29, 2002 |
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497 |
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497 |
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Additional paid-in capital |
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99,620 |
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99,690 |
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Accumulated deficit |
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(18,968 |
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(22,752 |
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Accumulated other comprehensive income |
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(62 |
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— |
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Treasury shares: 254,107 and 286,871 shares, respectively, at cost |
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(892 |
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(1,008 |
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Total shareholders’ equity |
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80,195 |
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76,427 |
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Total liabilities and shareholders’ equity |
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$ |
136,441 |
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$ |
149,394 |
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See notes to consolidated condensed financial statements
3
APAC Customer Services, Inc. and
Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited)
(In thousands, except per share data)
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Thirteen Weeks Ended |
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Thirty-Nine Weeks Ended |
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September 28, |
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September 29, |
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September 28, |
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September 29, |
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Net revenue |
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$ |
79,658 |
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$ |
85,092 |
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$ |
247,939 |
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$ |
283,454 |
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Operating expenses: |
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Cost of services |
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65,338 |
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69,199 |
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201,411 |
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227,142 |
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Selling, general and administrative Expenses |
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12,124 |
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11,640 |
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38,039 |
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38,265 |
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Restructuring and other charges |
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1,800 |
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1,131 |
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1,800 |
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3,667 |
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Asset impairment charges |
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108 |
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— |
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108 |
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510 |
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Total operating expenses |
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79,370 |
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81,970 |
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241,358 |
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269,584 |
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Operating income |
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288 |
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3,122 |
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6,581 |
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13,870 |
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