UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 - 0001
FORM 10-Q
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(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 QUARTER ENDED SEPTEMBER 30, 2003 |
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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 000-30271 |
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PEC SOLUTIONS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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DELAWARE |
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54-1339972 |
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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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12730 FAIR LAKES CIRCLE, FAIRFAX, VA |
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22033 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (703) 679-4900 |
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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 the 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
As of November 14, 2003, 27,212,466 of the registrant’s Common Stock, par value $.01 per share, were outstanding.
PEC SOLUTIONS, INC.
QUARTERLY REPORT ON FORM 10-Q FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
TABLE OF CONTENTS
2
PEC SOLUTIONS, INC.
(DOLLARS IN THOUSANDS)
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AS OF |
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AS OF |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
22,818 |
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$ |
21,176 |
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Short-term investments |
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40,958 |
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35,551 |
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Accounts receivable, net |
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49,511 |
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52,974 |
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Other current assets |
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2,547 |
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3,452 |
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Total current assets |
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115,834 |
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113,153 |
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Property and equipment, net |
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27,108 |
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27,967 |
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Investments |
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38,562 |
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26,790 |
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Goodwill |
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16,932 |
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16,932 |
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Intangibles, net |
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3,062 |
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3,700 |
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Other assets |
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4,478 |
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3,749 |
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Total assets |
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$ |
205,976 |
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$ |
192,291 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued expenses |
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$ |
7,627 |
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$ |
8,415 |
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Advance payments on contracts |
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471 |
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1,070 |
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Retirement plan contribution payable |
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1,581 |
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— |
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Accrued payroll |
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3,356 |
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6,836 |
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Accrued vacation |
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3,021 |
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2,562 |
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Other current liabilities |
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1,211 |
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935 |
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Total current liabilities |
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17,267 |
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19,818 |
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Long-term liabilities: |
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Supplemental retirement program liability |
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1,454 |
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966 |
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Deferred rent payable |
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1,680 |
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1,341 |
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Long-term lease obligation |
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22,995 |
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22,822 |
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Total long-term liabilities |
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26,129 |
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25,129 |
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Total liabilities |
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43,396 |
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44,947 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Undesignated capital stock, 10,000,000 shares authorized |
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— |
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— |
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Common stock, $0.01 par value, 75,000,000 shares authorized, 27,164,883 and 26,792,565 shares issued and outstanding, respectively |
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272 |
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268 |
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Additional paid-in capital |
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93,981 |
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91,071 |
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Retained earnings |
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68,471 |
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56,046 |
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Accumulated other comprehensive loss |
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(144 |
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(41 |
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Total stockholders’ equity |
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162,580 |
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147,344 |
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Total liabilities and stockholders’ equity |
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$ |
205,976 |
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$ |
192,291 |
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See notes to consolidated financial statements.
3
PEC SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
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THREE MONTHS ENDED |
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NINE MONTHS ENDED |
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SEPTEMBER 30, |
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SEPTEMBER 30, |
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SEPTEMBER 30, |
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SEPTEMBER 30, |
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(Unaudited) |
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Revenues |
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$ |
43,295 |
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$ |
52,844 |
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$ |
131,025 |
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$ |
133,836 |
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Operating costs and expenses: |
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Direct costs |
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25,821 |
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30,359 |
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78,503 |
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78,789 |
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General and administrative expenses |
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8,758 |
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9,164 |
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26,992 |
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24,685 |
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Sales and marketing expenses |
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1,250 |
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1,205 |
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4,331 |
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4,246 |
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Amortization of intangibles |
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213 |
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175 |
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638 |
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556 |
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Total operating costs and expenses |
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36,042 |
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40,903 |
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110,464 |
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108,276 |
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Operating income |
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7,253 |
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11,941 |
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20,561 |
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25,560 |
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Investment and other income |
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604 |
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205 |
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1,781 |
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1,179 |
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Interest expense |
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(664 |
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(1 |
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(1,986 |
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(7 |
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Income before income taxes |
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7,193 |
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12,145 |
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20,356 |
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26,732 |
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Provision for income taxes |
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2,751 |
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4,743 |
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7,786 |
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10,439 |
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Net income |
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$ |
4,442 |
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$ |
7,402 |
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$ |
12,570 |
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