[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

[   ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________   Commission File No. 001-31299

Delaware		65-0865171
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

 

 

PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets as of March 27, 2005 (Unaudited) and December 26, 2004	3
Condensed Consolidated Statements of Operations (Unaudited) for the three months ended March 27, 2005 and March 28, 2004	4
Condensed Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 27, 2005 and March 28, 2004	5
Notes to Condensed Consolidated Financial Statements (Unaudited)	6
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	13
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	24
ITEM 4. CONTROLS AND PROCEDURES	24
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS	25
ITEM 6. EXHIBITS	26
SIGNATURES	27
EXHIBIT INDEX	28

 

 

 

		March 27,			December 26,
			2005			2004
(in thousands, except per share amounts)			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	501		$	345
Accounts receivable, net of allowance for doubtful accounts of $1,044 and $1,064 at March 27, 2005 and December 26, 2004, respectively			57,648			57,478
Prepaid expenses			6,810			6,406
Other current assets			5,081			4,758
Total current assets			70,040			68,987
Furniture and equipment, net of accumulated depreciation of $19,869 and $18,650 at March 27, 2005 and December 26, 2004, respectively			8,317			8,481
Goodwill, net of accumulated amortization of $8,545 at both March 27, 2005 and December 26, 2004			129,474			129,474
Intangible assets, net of accumulated amortization of $1,817 and $1,663 at March 27, 2005 and December 26, 2004, respectively			2,284			2,438
Other assets			1,461			1,523
Total assets		$	211,576		$	210,903
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	12,342		$	12,072
Accrued payroll and related liabilities			8,164			6,597
Current portion of capital lease obligations			224			385
Total current liabilities			20,730			19,054
Long-term debt			30,967			31,760
Deferred income taxes			10,605			9,808
Capital lease obligations, net of current portion			10			33
Other liabilities			225			222
Total liabilities			62,537			60,877
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value, 75,000 shares authorized: 30,232 and 30,231 shares issued and outstanding at March 27, 2005 and December 26, 2004, respectively			302			302
Additional paid-in capital			284,414			284,411
Accumulated deficit			(135,677	)		(134,687	)
Total stockholders’ equity			149,039			150,026
Total liabilities and stockholders’ equity		$	211,576		$	210,903

 

 

 

 

		Three Months Ended
		March 27,			March 28,
			2005			2004
(in thousands, except per share amounts)
Service revenues		$	100,576		$	106,393
Cost of services rendered			79,132			84,224
Gross profit			21,444			22,169
Operating expenses:
Selling, general and administrative			17,082			17,262
Corporate and administrative			3,775			3,278
Depreciation and amortization			1,468			1,647
Loss from operations			(881	)		(18	)
Interest expense, net			797			960
Loss before benefit from income taxes			(1,678	)		(978	)
Benefit from income taxes			(688	)		(381	)
Net loss		$	(990	)	$	(597	)
Basic and diluted net loss per share		$	(0.03	)	$	(0.02	)
Weighted average number of common shares outstanding:
Basic and diluted			30,231			30,221

 

 

 

		Three Months Ended