UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 - 0001
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 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 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) |
Registrant’s telephone number, including area code: (703) 679-4900
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 August 9, 2004, 27,459,178 shares of the registrant’s Common Stock, par value $.01 per share, were outstanding.
PEC SOLUTIONS, INC.
QUARTERLY REPORT ON FORM 10-Q FOR THE SIX MONTHS ENDED JUNE 30, 2004
TABLE OF CONTENTS
3
PART I: FINANCIAL INFORMATION
ITEM 1. Financial Statements.
PEC SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
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As of |
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As of |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
26,499 |
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$ |
33,401 |
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Short-term investments |
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21,726 |
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38,274 |
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Accounts receivable, net |
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50,700 |
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48,356 |
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Other current assets |
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9,043 |
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1,745 |
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Total current assets |
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107,968 |
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121,776 |
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Property and equipment, net |
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26,043 |
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26,674 |
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Investments |
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40,605 |
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37,587 |
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Goodwill |
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39,931 |
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16,932 |
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Intangibles, net |
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9,933 |
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2,849 |
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Other assets |
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4,774 |
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4,553 |
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Total assets |
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$ |
229,254 |
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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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$ |
8,381 |
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$ |
5,576 |
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Advance payments on contracts |
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1,262 |
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439 |
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Retirement plan contribution payable |
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723 |
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— |
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Accrued payroll |
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4,871 |
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5,503 |
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Accrued vacation |
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3,794 |
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2,839 |
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Other current liabilities |
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6,499 |
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1,163 |
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Total current liabilities |
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25,530 |
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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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1,493 |
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1,417 |
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Deferred rent payable |
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2,004 |
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1,790 |
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Long-term lease obligation |
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23,161 |
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23,062 |
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Total long-term liabilities |
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26,658 |
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26,269 |
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Total liabilities |
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52,188 |
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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, $0.01 par value, 75,000,000 shares authorized, 27,443,938 and 27,303,041 shares issued and outstanding, respectively |
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274 |
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273 |
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Additional paid-in capital |
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96,440 |
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95,219 |
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Retained earnings |
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80,468 |
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73,140 |
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Accumulated other comprehensive loss |
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(116 |
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(50 |
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Total stockholders’ equity |
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177,066 |
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168,582 |
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Total liabilities and stockholders’ equity |
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$ |
229,254 |
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$ |
210,371 |
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See notes to consolidated financial statements.
4
PEC SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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June 30, |
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June 30, |
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(Unaudited) |
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Revenues |
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$ |
44,504 |
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$ |
44,265 |
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$ |
84,873 |
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$ |
87,731 |
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Operating costs and expenses: |
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Direct costs |
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27,113 |
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25,711 |
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51,736 |
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52,682 |
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General and administrative expenses |
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9,591 |
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9,074 |
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17,985 |
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18,233 |
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Sales and marketing expenses |
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1,397 |
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1,635 |
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2,524 |
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3,082 |
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Goodwill and intangible amortization |
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303 |
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212 |
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516 |
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425 |
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Total operating costs and expenses |
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38,404 |
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36,632 |
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72,761 |
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74,422 |
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Operating income |
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6,100 |
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7,633 |
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12,112 |
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13,309 |
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Investment and other income |
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555 |
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540 |
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952 |
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1,177 |
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Interest expense |
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