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 June 30, 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 ________
LECG CORPORATION
(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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incorporation or organization) |
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Identification Number) |
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2000 Powell Street, Suite 600 |
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Emeryville, California 94608 |
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(510) 985-6700 |
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(Address of principal executive offices |
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(Registrant’s telephone number, |
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including zip code) |
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including area code) |
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 x 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 x
As of July 20, 2004, there were 22,257,823 shares of the registrant’s common stock outstanding.
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
LECG CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
For the Quarters and Six Months Ended June 30, 2004 and 2003
(in thousands,
except per share data)
(unaudited)
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Quarter ended |
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Six months ended |
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June 30, |
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June 30, |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues |
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$ |
53,671 |
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$ |
41,432 |
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$ |
96,781 |
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$ |
80,232 |
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Cost of services: |
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Compensation and project costs |
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(35,775 |
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(28,385 |
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(64,272 |
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(54,596 |
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Equity-based compensation |
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53 |
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(107 |
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224 |
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(169 |
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Total cost of services |
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(35,722 |
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(28,492 |
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(64,048 |
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(54,765 |
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Gross profit |
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17,949 |
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12,940 |
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32,733 |
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25,467 |
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Operating expenses: |
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General and administrative expenses |
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(10,008 |
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(6,775 |
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(18,601 |
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(14,485 |
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Depreciation and amortization |
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(1,058 |
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(1,285 |
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(1,813 |
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(2,516 |
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Operating income |
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6,883 |
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4,880 |
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12,319 |
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8,466 |
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Interest income |
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71 |
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6 |
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182 |
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21 |
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Interest expense |
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(55 |
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(569 |
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(122 |
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(1,426 |
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Other income (expense), net |
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(26 |
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148 |
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(53 |
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243 |
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Income before income tax |
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6,873 |
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4,465 |
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12,326 |
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7,304 |
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Provision for income taxes |
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(2,803 |
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— |
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(5,005 |
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— |
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Net income |
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4,070 |
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4,465 |
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7,321 |
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7,304 |
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Accrued preferred dividends and accretion of preferred shares |
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— |
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(1,045 |
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— |
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(2,059 |
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Net income available to common shares |
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$ |
4,070 |
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$ |
3,420 |
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$ |
7,321 |
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$ |
5,245 |
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Net income per share: |
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Basic |
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$ |
0.19 |
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$ |
0.27 |
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$ |
0.34 |
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$ |
0.42 |
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Diluted |
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$ |
0.17 |
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$ |
0.23 |
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$ |
0.32 |
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$ |
0.35 |
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Share amounts: |
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Basic |
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21,717 |
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12,466 |
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21,561 |
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12,466 |
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Diluted |
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23,324 |
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14,984 |
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23,241 |
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14,957 |
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See notes to interim condensed consolidated financial statements
2
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June 30, |
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December 31, |
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2004 |
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2003 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
33,578 |
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$ |
67,177 |
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Accounts receivable, net of allowance of $519 and $482 |
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65,765 |
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46,708 |
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Prepaid expenses |
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2,702 |
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2,708 |
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Deferred taxes |
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9,059 |
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9,802 |
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Current portion of signing bonuses and other |
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8,919 |
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3,868 |
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Total current assets |
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120,023 |
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130,263 |
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Property and equipment, net |
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6,055 |
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4,506 |
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Goodwill |
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43,596 |
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23,976 |
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Other intangible assets |
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1,117 |
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533 |
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Signing bonuses and other assets |
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14,526 |
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3,864 |
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Total assets |
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$ |
185,317 |
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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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$ |
13,030 |
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$ |
5,733 |
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Accrued compensation |
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34,098 |
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29,270 |
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Deferred revenue |
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862 |
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732 |
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Distributions payable |
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