UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) |
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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) |
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For the transition period from to |
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Commission file number: 000-20540
ON ASSIGNMENT, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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95-4023433 |
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(State of Incorporation) |
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(IRS Employer Identification No.) |
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26651 West Agoura Road, Calabasas, CA 91302 |
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(Address of principal executive offices) |
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(Zip Code) |
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(818) 878-7900 |
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(Registrant’s telephone number, including area code) |
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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). Yes ý No o
At June 30, 2004, the total number of outstanding shares of the Company’s Common Stock ($0.01 par value) was 25,233,963.
ON ASSIGNMENT, INC.
Index
2
PART I - FINANCIAL INFORMATION
Item 1 - Consolidated Financial Statements
ON ASSIGNMENT, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
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June 30, |
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December 31, |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
31,072,000 |
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$ |
35,134,000 |
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Accounts receivable, net |
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22,697,000 |
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25,416,000 |
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Advances and deposits |
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371,000 |
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146,000 |
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Prepaid expenses |
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2,941,000 |
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2,862,000 |
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Income taxes receivable |
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4,006,000 |
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1,040,000 |
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Deferred income taxes |
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3,308,000 |
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3,306,000 |
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Other current assets |
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199,000 |
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— |
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Total current assets |
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64,594,000 |
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67,904,000 |
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Property and equipment, net |
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11,026,000 |
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9,175,000 |
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Goodwill, net |
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43,534,000 |
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43,538,000 |
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Identifiable intangible assets, net |
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7,734,000 |
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9,270,000 |
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Other assets |
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2,122,000 |
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2,094,000 |
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Total Assets |
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$ |
129,010,000 |
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$ |
131,981,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
3,663,000 |
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$ |
2,420,000 |
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Accrued payroll |
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5,252,000 |
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4,896,000 |
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Deferred compensation |
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645,000 |
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1,107,000 |
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Deferred rent expense |
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107,000 |
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84,000 |
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Accrued workers’ compensation |
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4,205,000 |
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3,612,000 |
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Other accrued expenses |
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2,168,000 |
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2,527,000 |
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Total current liabilities |
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16,040,000 |
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14,646,000 |
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Deferred rent expense |
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307,000 |
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291,000 |
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Deferred income taxes |
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1,159,000 |
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1,159,000 |
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Total liabilities |
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17,506,000 |
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16,096,000 |
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Stockholders’ Equity: |
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Preferred stock |
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— |
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— |
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Common stock |
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279,000 |
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279,000 |
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Paid-in capital |
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117,703,000 |
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117,511,000 |
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Retained earnings |
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15,092,000 |
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19,585,000 |
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Accumulated other comprehensive income |
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1,400,000 |
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1,480,000 |
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134,474,000 |
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138,855,000 |
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Less: Treasury shares, at cost |
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22,970,000 |
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22,970,000 |
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Total stockholders’ equity |
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111,504,000 |
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115,885,000 |
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Total Liabilities and Stockholders’ Equity |
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$ |
129,010,000 |
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$ |
131,981,000 |
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See accompanying Notes to Consolidated Financial Statements
3
ON ASSIGNMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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Three Months Ended June 30, |
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2004 |
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2003 |
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Revenues |
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$ |
46,313,000 |
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$ |
54,180,000 |
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Cost of services |
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34,288,000 |
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38,968,000 |
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Gross profit |
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12,025,000 |
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15,212,000 |
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Selling, general, and administrative expenses |
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16,908,000 |
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14,779,000 |
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Impairment of goodwill |
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— |
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79,897,000 |
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Operating loss |
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(4,883,000 |
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(79,464,000 |
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Interest income, net |
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84,000 |
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86,000 |
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Loss before income taxes |
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(4,799,000 |
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(79,378,000 |
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(Benefit) provision for income taxes |
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(1,809,000 |
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186,000 |
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Net loss |
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$ |
(2,990,000 |
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(79,564,000 |
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Basic and diluted loss per share |
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$ |
(0.12 |
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(3.15 |
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Weighted average number of common and common equivalent shares outstanding |
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25,233,000 |
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25,268,000 |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
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Three Months Ended June 30, |
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2004 |
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2003 |
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Net loss |
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$ |
(2,990,000 |
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$ |
(79,564,000 |
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Other comprehensive (loss) income: |
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Foreign currency translation adjustment |
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(36,000 |
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