UNITED
STATES
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, 2003 |
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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
SOURCECORP, INCORPORATED
(Exact name of registrant as specified in its charter)
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DELAWARE |
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75-2560895 |
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3232 MCKINNEY AVENUE, SUITE 1000 |
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75204 |
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REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE: (214) 740-6500 |
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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 by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes ý No o
As of November 5, 2003, 16,093,556 shares of the registrant’s Common Stock, $.01 par value per share, were outstanding.
SOURCECORP, INCORPORATED AND
SUBSIDIARIES
FORM 10-Q FOR THE PERIOD ENDED
SEPTEMBER 30, 2003
INDEX
2
Item 1. Financial Statements
SOURCECORP, INCORPORATED AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS,
EXCEPT SHARE DATA)
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December 31, |
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September 30, |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
3,217 |
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$ |
618 |
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Accounts and notes receivable, less allowance for doubtful accounts of $12,441 and $9,521, respectively |
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78,834 |
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68,696 |
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Inventories |
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2,360 |
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2,674 |
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Deferred income taxes |
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9,012 |
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6,648 |
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Prepaid expenses and other current assets |
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3,887 |
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3,342 |
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Total current assets |
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97,310 |
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81,978 |
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PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $53,471 and $61,806 respectively |
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40,575 |
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41,355 |
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GOODWILL, net of amortization of $22,356 |
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317,256 |
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322,995 |
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INTANGIBLES, net of amortization of $356 and $621, respectively |
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4,084 |
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3,819 |
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OTHER NONCURRENT ASSETS |
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8,382 |
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9,672 |
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Total assets |
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$ |
467,607 |
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$ |
459,819 |
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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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$ |
58,029 |
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$ |
55,851 |
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Current maturities of long-term obligations |
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113 |
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184 |
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Income tax payable |
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180 |
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4,892 |
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Total current liabilities |
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58,322 |
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60,927 |
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LONG-TERM OBLIGATIONS, net of current maturities |
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89,640 |
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71,480 |
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DEFERRED INCOME TAXES |
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11,679 |
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15,492 |
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OTHER LONG-TERM OBLIGATIONS |
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5,290 |
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6,990 |
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Total liabilities |
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164,931 |
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154,889 |
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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, $.01 par value, 26,000,000 shares authorized, 17,420,595 and 16,217,084 shares issued and 17,364,567 and 16,161,056 outstanding at December 31, 2002 and September 30, 2003, respectively |
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175 |
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163 |
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Additional paid-in-capital |
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206,843 |
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195,192 |
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Accumulated other comprehensive loss |
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(329 |
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— |
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Retained earnings |
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96,969 |
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113,149 |
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303,658 |
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308,504 |
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Less—Treasury stock, at cost, 56,028 shares |
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(982 |
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(982 |
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Less—Deferred compensation |
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— |
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(2,592 |
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Total stockholders’ equity |
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302,676 |
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304,930 |
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Total liabilities and stockholders’ equity |
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$ |
467,607 |
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$ |
459,819 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
SOURCECORP, INCORPORATED AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
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Three Months Ended |
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Nine Months Ended |
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2002 |
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2003 |
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2002 |
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2003 |
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(Unaudited) |
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(Unaudited) |
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REVENUE |
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$ |
107,465 |
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$ |
100,926 |
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$ |
316,536 |
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$ |
312,221 |
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COST OF SERVICES |
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64,683 |
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59,657 |
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190,216 |
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185,816 |
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DEPRECIATION |
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3,578 |
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3,607 |
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10,672 |
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10,610 |
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Gross profit |
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39,204 |
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37,662 |
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115,648 |
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115,795 |
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
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25,154 |
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26,098 |
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76,182 |
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79,010 |
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AMORTIZATION |
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89 |
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89 |
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267 |
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266 |
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Operating income |
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13,961 |
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11,475 |
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39,199 |
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36,519 |
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OTHER (INCOME) EXPENSE: |
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Interest expense |
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1,555 |
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441 |
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4,592 |
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2,856 |
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Interest income |
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(28 |
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(5 |
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(79 |
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(280 |
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Other (income) expense, net |
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75 |
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119 |
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539 |
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(36 |
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Income before income taxes |
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12,359 |
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10,920 |
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34,147 |
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33,979 |
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PROVISION FOR INCOME TAXES |
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4,696 |
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4,368 |
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12,976 |
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13,592 |
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NET INCOME |
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$ |
7,663 |
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$ |
6,552 |
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$ |
21,171 |
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$ |
20,387 |
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NET INCOME PER COMMON SHARE |
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