UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 10-Q
(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 quarterly period ended June 27, 2004 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the Transition Period From to
Commission file number 0-26786
APAC Customer Services, Inc.
(Exact name of registrant as specified in its charter)
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Illinois |
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36-2777140 |
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(State or other jurisdiction |
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(I.R.S. Employer |
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Six Parkway North Center, Suite 400, Deerfield, Illinois 60015 |
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(Address of Principal Executive Offices, Zip Code) |
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Registrant’s telephone number, including area code: (847) 374-4980
Indicate by check mark whether 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 periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Yes ý |
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No o |
Indicate by check mark whether the registrant is an accelerated filer (as defined in rule 12b-2 of the Exchange Act).
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Yes ý |
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No o |
There were 49,454,654 common shares, $0.01 par value per share, outstanding as of August 4, 2004.
2
Consolidated Condensed Balance Sheets
(Unaudited)
(In thousands)
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June 27, |
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December
28, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
10,184 |
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$ |
11,428 |
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Accounts receivable, net |
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42,478 |
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46,896 |
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Other current assets |
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8,754 |
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9,218 |
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Total current assets |
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61,416 |
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67,542 |
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Property and equipment, net |
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21,791 |
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24,147 |
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Goodwill |
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23,876 |
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23,876 |
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Other intangible assets, net |
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13,861 |
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15,035 |
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Deferred taxes |
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3,353 |
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3,072 |
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Other assets |
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733 |
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921 |
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Total assets |
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$ |
125,030 |
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$ |
134,593 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Current maturities of long-term debt |
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$ |
404 |
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$ |
389 |
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Accounts payable |
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1,997 |
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4,046 |
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Accrued payroll and related items |
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17,047 |
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18,367 |
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Income taxes payable |
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15,368 |
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17,952 |
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Other accrued liabilities |
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10,250 |
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11,107 |
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Total current liabilities |
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45,066 |
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51,861 |
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Long-term debt, less current maturities |
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106 |
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313 |
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Other liabilities |
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1,568 |
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1,689 |
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Commitments and contingencies |
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— |
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— |
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Shareholders’ equity |
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Common shares, $0.01 par value; 200,000,000 shares authorized; 49,695,699 shares issued at June 27, 2004, and December 28, 2003 |
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497 |
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497 |
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Additional paid-in capital |
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99,599 |
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99,620 |
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Accumulated deficit |
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(20,830 |
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(18,413 |
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Accumulated other comprehensive income |
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(129 |
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(82 |
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Treasury shares: 241,045 and 254,107 shares, respectively, at cost |
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(847 |
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(892 |
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Total shareholders’ equity |
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78,290 |
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80,730 |
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Total liabilities and shareholders’ equity |
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$ |
125,030 |
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$ |
134,593 |
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See notes to consolidated condensed financial statements
3
APAC Customer Services, Inc. and Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited)
(In thousands, except per share data)
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Thirteen Weeks Ended |
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Twenty-Six Weeks Ended |
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June 27, |
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June 29, |
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June 27, |
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June 29, |
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Net revenue |
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$ |
68,006 |
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$ |
82,084 |
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$ |
139,410 |
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$ |
168,281 |
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Operating expenses: |
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Cost of services |
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58,496 |
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66,645 |
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118,626 |
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136,073 |
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Selling, general and administrative expenses |
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9,682 |
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12,919 |
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20,501 |
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25,915 |
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Restructuring and other charges |
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999 |
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— |
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1,850 |
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— |
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Asset impairment charges |
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124 |
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— |
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2,234 |
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— |
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Total operating expenses |
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69,301 |
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79,564 |
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143,211 |
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161,988 |
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Operating income (loss) |
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(1,295 |
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2,520 |
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(3,801 |
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6,293 |
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Interest (income) expense, net |
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(63 |
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306 |
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97 |
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