SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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 March 31, 2004 |
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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 000-30271
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 May 10, 2004, 27,345,552 of the registrant’s Common Stock, par value $.01 per share, were outstanding.
PEC SOLUTIONS, INC.
QUARTERLY REPORT ON FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 2004
TABLE OF CONTENTS
2
PART I - FINANCIAL INFORMATION
BALANCE SHEETS
(Dollars in thousands)
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As of |
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As of |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
30,487 |
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$ |
33,401 |
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Short-term investments |
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39,292 |
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38,274 |
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Accounts receivable, net |
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52,125 |
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48,356 |
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Other current assets |
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1,994 |
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1,745 |
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Total current assets |
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123,898 |
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121,776 |
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Property and equipment, net |
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26,317 |
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26,674 |
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Investments |
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39,681 |
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37,587 |
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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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2,637 |
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2,849 |
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Other assets |
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4,593 |
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4,553 |
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Total assets |
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$ |
214,058 |
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$ |
210,371 |
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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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$ |
4,714 |
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$ |
5,576 |
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Advance payments on contracts |
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686 |
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439 |
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Accrued payroll |
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3,055 |
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5,503 |
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Accrued vacation |
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3,407 |
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2,839 |
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Other current liabilities |
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3,414 |
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1,163 |
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Total current liabilities |
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15,276 |
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15,520 |
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Long-term liabilities: |
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Supplemental retirement program liability |
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1,466 |
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1,417 |
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Deferred rent |
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1,884 |
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1,790 |
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Long-term lease obligation |
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23,111 |
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23,062 |
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Total long-term liabilities |
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26,461 |
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26,269 |
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Total liabilities |
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41,737 |
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41,789 |
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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, $0.01 par value, 75,000,000 shares authorized, 27,311,371 and 27,303,041 shares issued and outstanding, respectively |
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273 |
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273 |
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Additional paid-in capital |
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95,314 |
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95,219 |
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Retained earnings |
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76,728 |
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73,140 |
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Accumulated other comprehensive income (loss) |
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6 |
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(50 |
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Total stockholders’ equity |
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172,321 |
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168,582 |
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Total liabilities and stockholders’ equity |
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$ |
214,058 |
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$ |
210,371 |
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See notes to financial statements.
3
STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
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Three Months Ended |
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March 31, 2004 |
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March 31, 2003 |
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(Unaudited) |
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Revenues |
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$ |
40,369 |
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$ |
43,466 |
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Operating costs and expenses: |
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Direct costs |
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24,623 |
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26,971 |
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General and administrative expenses |
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8,495 |
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9,159 |
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Sales and marketing expenses |
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1,127 |
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1,447 |
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Amortization of intangibles |
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213 |
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213 |
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Total operating costs and expenses |
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34,458 |
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37,790 |
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Operating income |
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6,013 |
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5,676 |
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Investment and other income |
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499 |
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637 |
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Interest expense |
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(667 |
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(660 |
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Income before income taxes |
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5,743 |
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5,653 |
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Provision for income taxes |
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2,155 |
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2,162 |
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Net income |
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$ |
3,588 |
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$ |
3,491 |
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Earnings per share: |
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Basic |
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$ |
0.13 |
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$ |
0.13 |
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Diluted |
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$ |
0.12 |
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$ |
0.12 |
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Weighted average shares used in computing earnings per share: |
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Basic |
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27,307 |
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26,935 |
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Diluted |
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29,799 |
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29,925 |
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See notes to financial statements.
4
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
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Three Months Ending |
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March 31, 2004 |
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