UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
ý Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period end ed March 31, 2005
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 000-50464
LECG CORPORATION
(Exact name of registrant as specified in its charter)
Delaware |
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81-0569994 |
(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 |
(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 regist rant is an accelerated filer (as defined in Exchange Act Rule 12b-2 of the Exchange Act). Yes ý No o
As of April 30, 2005, there were 23,187,598 shares of the registrant’s common stock outstanding.
LECG CORPORATION
FORM 10-Q
TABLE OF CONTENTS
2
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LECG CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Quarters Ended March 31, 2005 and 2004
(in thousands, except per share data)
(unaudited)
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Quarter ended |
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2005 |
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2004 |
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Revenues |
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$ |
69,721 |
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$ |
43,110 |
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Cost of services |
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(46,076 |
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(28,326 |
) |
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Gross profit |
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23,645 |
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14,784 |
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Operating expenses: |
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General and administrative expenses |
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(13,550 |
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(8,671 |
) |
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Depreciation and amortization |
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(1,116 |
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(677 |
) |
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Operating income |
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8,979 |
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5,436 |
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Interest income |
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190 |
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111 |
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Interest expense |
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(55 |
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(67 |
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Other expense, net |
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(26 |
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(27 |
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Income before income tax |
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9,088 |
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5,453 |
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Income tax provision |
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(3,735 |
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(2,202 |
) |
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Net income |
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$ |
5,353 |
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$ |
3,251 |
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Net income per share: |
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Basic |
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$ |
0.24 |
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$ |
0.15 |
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Diluted |
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$ |
0.22 |
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$ |
0.14 |
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Share amounts: |
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Basic |
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22,763 |
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21,406 |
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Diluted |
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23,978 |
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23,346 |
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See notes to condensed consolidated financial statements
3
LECG CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2005 and December 31, 2004
(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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$ |
35,663 |
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$ |
42,082 |
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Accounts receivable, net of allowance of $480 and $433 |
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81,445 |
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73,137 |
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Prepaid expenses |
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4,019 |
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3,456 |
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Deferred tax assets, net |
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1,326 |
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1,476 |
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Current portion of signing bonuses and other current assets |
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11,982 |
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10,162 |
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Total current assets |
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134,435 |
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130,313 |
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Property and equipment, net |
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7,324 |
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6,493 |
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Goodwill |
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61,341 |
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57,947 |
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Other intangible assets, net |
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129 |
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478 |
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Long-term portion of signing bonuses and other assets |
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25,271 |
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19,480 |
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Total assets |
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$ |
228,500 |
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$ |
214,711 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable and other accrued liabilities |
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$ |
8,842 |
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$ |
6,701 |
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Accrued compensation |
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41,354 |
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37,599 |
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Payable for business acquisitions - current |
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2,921 |
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6,183 |
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Deferred revenue |
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1,685 |
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1,409 |
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Total current liabilities |
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54,802 |
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51,892 |
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Payable for business acquisitions - long-term |
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3,926 |
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2,400 |
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Deferred compensation plan |
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3,787 |
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3,203 |
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Deferred tax liability |
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386 |
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386 |
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Deferred rent and other long-term liabilities |
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3,515 |
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2,443 |
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Stockholders’ equity: |
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Common stock, $.001 par value, 200,000,000 shares authorized, 23,014,712 and 22,813,471 shares issued and outstanding at March 31, 2005 and December 31, 2004, respectively |
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23 |
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23 |
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Additional paid-in capital |
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127,462 |
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125,070 |
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Deferred equity compensation |
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(1,446 |
) |
(1,580 |
) |
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Accumulated other comprehensive income |
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976 |
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1,158 |
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Retained earnings |
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35,069 |
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29,716 |
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Total stockholders’ equity |
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162,084 |
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154,387 |
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Total liabilities and stockholders’ equity |
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$ |
228,500 |
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$ |
214,711 |
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See notes to condensed consolidated financial statements
4
LECG CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF