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 AND EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 2005 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
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For the transition period from to |
Commission file number 0-27444
SOURCECORP, INCORPORATED
(Exact name of registrant as specified in its charter)
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DELAWARE |
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75-2560895 |
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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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3232 MCKINNEY AVENUE, SUITE 1000 |
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75204 |
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(Address of principal executive offices) |
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(Zip code) |
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REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE: (214) 740-6500 |
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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
As of April 29, 2005, 15,670,116 shares of the registrant’s Common Stock, $.01 par value per share, were outstanding.
SOURCECORP, INCORPORATED AND SUBSIDIARIES
FORM 10-Q FOR THE PERIOD ENDED MARCH 31, 2005
INDEX
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
SOURCECORP, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
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December 31, |
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March 31, |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
3,722 |
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$ |
244 |
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Accounts and notes receivable, less allowance for doubtful accounts of $9,331 and $8,800, respectively |
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65,315 |
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73,885 |
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Inventories |
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875 |
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1,064 |
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Deferred income taxes |
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5,272 |
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5,785 |
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Income tax receivable |
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5,077 |
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— |
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Prepaid expenses and other current assets |
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6,142 |
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7,285 |
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Assets of discontinued operations |
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842 |
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— |
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Total current assets |
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87,245 |
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88,263 |
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PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $45,166 and $48,409, respectively |
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39,603 |
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41,866 |
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GOODWILL |
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326,139 |
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325,185 |
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INTANGIBLES, net of amortization of $1,700 and $1,906, respectively |
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4,904 |
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4,698 |
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OTHER NONCURRENT ASSETS |
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11,524 |
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11,225 |
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Total assets |
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$ |
469,415 |
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$ |
471,237 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable and accrued liabilities |
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$ |
52,549 |
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$ |
44,954 |
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Current maturities of long-term obligations |
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258 |
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234 |
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Income tax payable |
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— |
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1,371 |
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Liabilities of discontinued operations |
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326 |
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— |
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Total current liabilities |
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53,133 |
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46,559 |
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LONG-TERM OBLIGATIONS, net of current maturities |
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87,547 |
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94,225 |
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DEFERRED INCOME TAXES |
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13,210 |
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11,823 |
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LONG-TERM CUSTOMER LIABILITY |
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4,147 |
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1,305 |
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DEFERRED REVENUE |
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8,010 |
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6,721 |
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OTHER LONG-TERM OBLIGATIONS |
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10,947 |
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10,418 |
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Total liabilities |
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176,994 |
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171,051 |
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS’ EQUITY: |
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Preferred stock, $.01 par value, 1,000,000 shares authorized, no shares issued or outstanding |
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— |
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— |
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Common stock, $.01 par value, 26,000,000 shares authorized, 15,703,586 and 15,706,786 shares issued and 15,666,916 and 15,670,116 shares outstanding at December 31, 2004 and March 31, 2005, respectively |
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157 |
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157 |
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Additional paid-in-capital |
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193,925 |
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193,925 |
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Retained earnings |
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103,136 |
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110,270 |
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297,218 |
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304,352 |
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Less— |
Treasury stock, at cost, 36,670 shares |
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(501 |
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(501 |
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Less— |
Deferred compensation |
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(4,296 |
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(3,665 |
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Total stockholders’ equity |
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292,421 |
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300,186 |
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Total liabilities and stockholders’ equity |
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$ |
469,415 |
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$ |
471,237 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
SOURCECORP, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
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Three Months Ended |
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2004 |
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2005 |
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(Unaudited) |
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REVENUE |
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$ |
95,816 |
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$ |
105,932 |
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COST OF SERVICES EXCLUSIVE OF DEPRECIATION |
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56,393 |
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58,536 |
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DEPRECIATION |
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3,200 |
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3,423 |
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Gross profit |
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36,223 |
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43,973 |
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
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31,068 |
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30,221 |
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AMORTIZATION |
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89 |
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206 |
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Operating income |
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5,066 |
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13,546 |
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OTHER (INCOME) EXPENSE: |
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Interest expense |
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660 |
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1,211 |
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