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 quarterly period 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 |
Commission File Number
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LECG CORPORATION |
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(Exact name of registrant as specified in its charter) |
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Delaware |
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81-0569994 |
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(State
or other jurisdiction of |
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(IRS
Employer |
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2000 Powell Street, Suite 600 |
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(510) 985-6700 |
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(Address of principal executive offices including zip code) |
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(Registrant’s
telephone number, |
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 of the Exchange Act). Yes o No ý
As of April 30, 2004, there were 21,821,227 shares of the registrant’s common stock outstanding.
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LECG CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
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Quarter
ended |
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2004 |
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2003 |
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Revenues |
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$ |
43,110 |
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$ |
38,800 |
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Cost of services: |
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Compensation and project costs |
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(28,497 |
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(26,212 |
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Equity-based compensation |
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171 |
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(61 |
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Total cost of services |
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(28,326 |
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(26,273 |
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Gross profit |
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14,784 |
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12,527 |
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Operating expenses: |
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General and administrative expenses |
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(8,593 |
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(7,710 |
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Depreciation and amortization |
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(755 |
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(1,231 |
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Operating income |
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5,436 |
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3,586 |
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Interest income |
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111 |
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15 |
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Interest expense |
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(67 |
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(857 |
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Other income (expense), net |
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(27 |
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95 |
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Income before income tax |
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5,453 |
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2,839 |
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Provision for income taxes |
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(2,202 |
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— |
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Net income |
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3,251 |
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2,839 |
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Accrued preferred dividends and accretion of preferred shares |
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— |
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(1,014 |
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Net income attributable to common shares |
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$ |
3,251 |
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$ |
1,825 |
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Net income per share: |
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Basic |
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$ |
0.15 |
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$ |
0.15 |
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Diluted |
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$ |
0.14 |
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$ |
0.12 |
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Share amounts: |
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Basic |
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21,406,061 |
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12,466,280 |
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Diluted |
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23,345,878 |
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14,992,622 |
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See notes to consolidated financial statements
3
LECG CORPORATION
(in thousands, except share data)
(unaudited)
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March 31, |
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December
31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
36,065 |
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$ |
67,177 |
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Accounts receivable, net of allowance of $537 and $482 |
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51,773 |
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46,708 |
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Prepaid expenses |
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2,360 |
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2,708 |
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Deferred taxes |
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9,802 |
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9,802 |
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Other |
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7,109 |
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3,868 |
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Total current assets |
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107,109 |
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130,263 |
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Property and equipment, net |
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4,322 |
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4,506 |
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Goodwill |
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44,132 |
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23,976 |
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Other intangible assets |
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433 |
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533 |
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Signing bonuses and other assets |
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11,270 |
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3,864 |
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Total assets |
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$ |
167,266 |
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$ |
163,142 |
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Liabilities and shareholders’ equity |
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Current liabilities: |
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Accounts payable and other accrued liabilities |
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$ |
7,331 |
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$ |
5,733 |
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Accrued compensation |
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30,232 |
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29,270 |
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Deferred revenue |
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760 |
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732 |
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Distributions payable |
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1,145 |
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3,398 |
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Total current liabilities |
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39,468 |
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39,133 |
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Other long-term liabilities |
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22 |
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22 |
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Shareholders’ equity: |
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Common stock, $.001 par value, 200,000,000 shares authorized, 21,744,232 and 21,693,156 shares outstanding at March 31, 2004 and December 2003, respectively) |
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22 |
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22 |
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Additional paid-in capital |
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113,598 |
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113,326 |
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Receivable from shareholder |
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(293 |
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(290 |
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Deferred equity compensation |
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(2,038 |
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(2,193 |
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Accumulated other comprehensive income |
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625 |
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510 |
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Retained earnings |
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15,862 |
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12,612 |
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Total shareholders’ equity |
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127,776 |
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123,987 |
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Total liabilities and shareholders’ equity |
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$ |
167,266 |
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$ |
163,142 |
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