UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

Delaware		22-2427618
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
10100 Old Columbia Road, Columbia, Maryland		21046
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code: (410) 312-5100

 

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 Rule 12b-2 of the Exchange Act).  Yes  ý   No  o

 

Number of shares outstanding of each of the issuer’s classes of common stock as of May 3, 2004:

 

 

 

DURATEK, INC.

 

TABLE OF CONTENTS

 

Part I		Financial Information
Item 1.		Financial Statements
		Consolidated Balance Sheets as of March 28, 2004 and December 31, 2003
		Consolidated Statements of Operations for the Three Months Ended March 28, 2004 and March 30, 2003
		Consolidated Statements of Cash Flows for the Three Months Ended March 28, 2004 and March 30, 2003
		Notes to Consolidated Financial Statements
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.		Quantitative and Qualitative Disclosures about Market Risk
Item 4.		Controls and Procedures
Part II		Other Information
Item 1.		Legal Proceedings
Item 6.		Exhibits and Reports on Form 8-K
		Signatures

 

 

Forward-Looking Information

 

This report contains forward-looking statements.  Additional written or oral forward-looking statements may be made by us from time to time in filings with the Securities and Exchange Commission or otherwise.  The words “believe,” “expect,” “anticipate,” and “project” and similar expressions identify forward-looking statements, which speak only as of the date the statement is made.  Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Such statements may include, but are not limited to, information regarding our ability to manage our commercial waste processing operations, the timing and award of contracts by the U.S. Department of Energy (“DOE”) for the cleanup of waste sites administered by the DOE, the acceptance and implementation of our waste treatment technologies in the government and commercial sectors and other large technical support services projects. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified.  Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements.  Statements in this report, including those set forth in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” describe factors, among others, that could contribute to or cause such differences.

 

Although we believe that our expectations that are expressed in these forward-looking statements are reasonable, we cannot promise that our expectations will turn out to be correct.  Our actual results could be materially different from and worse than our expectations.  Important risks and factors that could cause our actual results to be materially different from our expectations include the factors that are disclosed elsewhere herein and in Item 1 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2003 as filed with the Securities and Exchange Commission.

 

 

Part I   Financial Information

Item 1.  Financial Statements

 

DURATEK, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands of dollars, except per share amounts)

 

		March 28, 2004			December 31, 2003
		(unaudited)			*
Assets
Current assets:
Cash		$	29,752		$	35,174
Accounts receivable, less allowance for doubtful accounts of $849 in 2004 and $842 in 2003		36,630			38,378
Income taxes recoverable		797			—
Cost and estimated earnings in excess of billings on uncompleted contracts		17,214			15,464
Prepaid expenses and other current assets		9,516			7,760
Total current assets		93,909			96,776
Retainage		6,299			6,685
Property, plant and equipment, net		68,982			69,416
Goodwill		70,797			70,797
Other intangible assets		4,481			4,718
Decontamination and decommissioning trust fund		19,790			20,767
Other assets		13,983			13,985
Total assets		$	278,241		$	283,144
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt		$	1,150		$	1,150
Accounts payable		8,928			12,851
Accrued expenses and other current liabilities		37,918			39,592
Unearned revenues		19,715			21,410
Waste processing and disposal liabilities		5,587			8,001
Total current liabilities		73,298			83,004
Long-term debt, less current portion		114,825			114,825
Facility and equipment decontamination and decommissioning liabilities		40,114			40,855
Other noncurrent liabilities		6,959			6,294
Total liabilities		235,196			244,978
8% Cumulative Convertible Redeemable Preferred Stock, $.01 par value; 160,000 shares authorized, 3,002 shares issued and outstanding at March 28, 2004 and December 31, 2003		300			300
Stockholders’ equity:
Preferred stock – $0.01 par value; authorized 4,740,000 shares; none issued		—			—
Series B junior participating preferred stock, $.01 par value; 100,000 shares authorized; none issued		—			—
Common stock – $0.01 par value; authorized 35,000,000 shares; issued 15,680,091 shares in 2004 and 15,229,100 shares in 2003		156			152
Capital in excess of par value		80,442			78,375
Accumulated deficit		(26,953		)	(30,026		)
Treasury stock at cost, 1,770,306 shares in 2004, 1,738,720 shares in 2003		(10,900		)	(10,635		)
Total stockholders’ equity		42,745			37,866
Total liabilities and stockholders’ equity		$	278,241		$	283,144

 

* The Consolidated Balance Sheet as of December 31, 2003 has been derived from our audited Consolidated Balance Sheet included in our Annual Report on Form 10-K for the year ended December 31, 2003.

 

See accompanying notes to consolidated financial statements.

 

2

 

DURATEK, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share amounts)

 

		Three months ended
		March 28, 2004			March 30, 2003
		(unaudited)
Revenues		$	64,182		$	63,830
Cost of revenues		48,250			50,561
Gross profit		15,932			13,269
Selling, general and administrative expenses		8,647			8,033
Income from operations		7,285			5,236
Interest expense		(2,356		)	(1,074		)
Other income (loss), net		72			(102		)
Income before income taxes, equity in income of joint ventures, and cumulative effect of a change in accounting principle