UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2005
OR
o 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: 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 |
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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 March 31, 2005, the total number of outstanding shares of the Company’s Common Stock ($0.01 par value) was 25,324,841.
ON ASSIGNMENT, INC.
Index
PART I - FINANCIAL INFORMATION
Item 1 - Consolidated Financial Statements
ON ASSIGNMENT, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
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March 31, |
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December 31, |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
14,811,000 |
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$ |
20,787,000 |
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Marketable securities |
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8,000,000 |
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2,000,000 |
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Accounts receivable, net |
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25,495,000 |
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27,051,000 |
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Advances and deposits |
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310,000 |
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267,000 |
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Prepaid expenses |
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2,512,000 |
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2,720,000 |
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Income taxes receivable |
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6,259,000 |
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5,702,000 |
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Other current assets |
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296,000 |
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119,000 |
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Total Current Assets |
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57,683,000 |
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58,646,000 |
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Property and equipment, net |
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11,464,000 |
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11,697,000 |
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Goodwill, net |
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16,596,000 |
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17,117,000 |
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Identifiable intangible assets, net |
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2,400,000 |
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2,681,000 |
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Other assets |
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2,223,000 |
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2,241,000 |
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Total Assets |
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$ |
90,366,000 |
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$ |
92,382,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
3,678,000 |
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$ |
3,623,000 |
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Accrued payroll |
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7,197,000 |
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5,958,000 |
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Deferred compensation |
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588,000 |
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646,000 |
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Deferred rent expense |
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159,000 |
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167,000 |
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Income taxes payable |
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85,000 |
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90,000 |
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Accrued workers’ compensation |
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4,269,000 |
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4,053,000 |
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Other accrued expenses |
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2,614,000 |
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3,152,000 |
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Total Current Liabilities |
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18,590,000 |
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17,689,000 |
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Deferred rent expense |
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216,000 |
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222,000 |
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Total Liabilities |
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18,806,000 |
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17,911,000 |
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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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280,000 |
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280,000 |
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Paid-in capital |
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118,095,000 |
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117,894,000 |
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Accumulated deficit |
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(25,679,000 |
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(22,808,000 |
) |
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Accumulated other comprehensive income |
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1,834,000 |
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2,075,000 |
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94,530,000 |
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97,441,000 |
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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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71,560,000 |
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74,471,000 |
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Total Liabilities and Stockholders’ Equity |
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$ |
90,366,000 |
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$ |
92,382,000 |
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See accompanying Notes to Consolidated Financial Statements
2
ON ASSIGNMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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Three Months Ended March 31, |
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2005 |
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2004 |
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Revenues |
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$ |
49,796,000 |
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$ |
46,426,000 |
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Cost of services |
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36,827,000 |
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34,613,000 |
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Gross profit |
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12,969,000 |
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11,813,000 |
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Selling, general and administrative expenses |
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15,974,000 |
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14,349,000 |
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Operating loss |
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(3,005,000 |
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(2,536,000 |
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Interest income, net |
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214,000 |
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92,000 |
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Loss before income taxes |
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(2,791,000 |
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(2,444,000 |
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Provision (benefit) for income taxes |
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80,000 |
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(941,000 |
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Net loss |
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$ |
(2,871,000 |
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$ |
(1,503,000 |
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Basic loss per share |
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$ |
(0.11 |
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$ |
(0.06 |
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Weighted average number of common shares outstanding |
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25,297,000 |
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25,208,000 |
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Diluted loss per share |
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$ |
(0.11 |
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$ |
(0.06 |
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Weighted average number of common and common equivalent shares outstanding |
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25,297,000 |
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25,208,000 |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
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Three Months Ended March 31, |
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