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 EXCHANGE ACT OF 1934 |
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FOR THE QUARTER ENDED MARCH 27, 2004 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number
000-50080
SI International, Inc.
(Exact Name of Registrant as Specified in Its Charter)
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Delaware |
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52-2127278 |
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(State or Other Jurisdiction of |
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(I.R.S. Employer |
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12012 Sunset Hills Road |
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20190-5869 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (703) 234-7000
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. ý Yes o No
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
o Yes ý No
As of May 3, 2004, there were 8,468,616 shares outstanding of the registrant’s common stock.
SI INTERNATIONAL, INC.
FORM 10-Q
2
SI International, Inc. and Subsidiaries
(Amounts in thousands, except share and per share data)
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March 27, |
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December 27, |
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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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$ |
4,453 |
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$ |
23,252 |
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Accounts receivable, net |
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52,061 |
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34,007 |
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Other current assets |
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6,751 |
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4,597 |
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Total current assets |
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63,265 |
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61,856 |
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Property and equipment, net |
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4,993 |
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3,768 |
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Goodwill |
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94,493 |
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39,829 |
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Intangible assets, net |
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4,910 |
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— |
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Other assets |
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1,774 |
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1,174 |
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Total assets |
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$ |
169,435 |
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$ |
106,627 |
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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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$ |
26,046 |
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$ |
17,708 |
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Line of credit |
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16,000 |
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— |
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Current portion of long-term debt |
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4,500 |
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— |
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Current portion of operating lease obligations |
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941 |
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— |
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Escrow payable |
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2,072 |
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— |
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Deferred revenue |
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3,975 |
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3,975 |
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Other current liabilities |
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444 |
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465 |
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Total current liabilities |
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53,978 |
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22,148 |
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Long-term debt, net of current portion |
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25,500 |
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— |
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Long-term operating lease obligations |
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1,618 |
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— |
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Other long-term liabilities |
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4,278 |
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2,932 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Common stock—$0.01 par value per share; 50,000,000 shares authorized; 8,463,148 and 8,451,507 shares issued and outstanding as of March 27, 2004 and December 27, 2003, respectively |
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85 |
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85 |
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Additional paid-in capital |
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75,827 |
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75,704 |
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Deferred compensation |
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(307 |
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(340 |
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Retained earnings |
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8,456 |
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6,098 |
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Total stockholders’ equity |
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84,061 |
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81,547 |
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Total liabilities and stockholders’ equity |
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$ |
169,435 |
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$ |
106,627 |
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3
SI
International, Inc. and Subsidiaries
Consolidated Statements of
Operations
(Amounts in thousands, except per share data)
Unaudited
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Three Months Ended |
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March 27, |
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March 29, |
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Revenue |
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$ |
55,970 |
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$ |
41,324 |
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Costs and expenses: |
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Direct costs |
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33,529 |
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25,026 |
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Indirect costs, including $32 and $35 of non-cash stock-based compensation in fiscal quarters ended March 27, 2004 and March 29, 2003, respectively |
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17,309 |
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13,163 |
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Depreciation and amortization |
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589 |
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512 |
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Amortization of intangible assets |
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113 |
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Total operating expenses |
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51,540 |
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38,701 |
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Income from operations |
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4,430 |
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2,623 |
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Interest expense |
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(534 |
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(162 |
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Income before provision for income taxes |
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3,896 |
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2,461 |
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Provision for income taxes |
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1,539 |
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973 |
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Net income |
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$ |
2,357 |
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$ |
1,488 |
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Earnings per common share: |
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Basic net income per common share |
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$ |
0.28 |
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$ |
0.18 |
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Diluted net income per common share |
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$ |
0.27 |
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$ |
0.18 |
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Basic weighted-average shares outstanding |
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8,458 |
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8,442 |
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Diluted weighted-average shares outstanding |
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8,833 |
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8,442 |
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See accompanying notes
4
SI International, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Amounts in thousands)
Unaudited
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Three Months Ended |
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March 27, |
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March 29, |
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Cash flows from operating activities: |
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Net income |
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$ |
2,357 |
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$ |
1,488 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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