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8-K - FORM 8-K - GTSI CORPc24780e8vk.htm
Exhibit 99.1
(GTSI LOGO)
GTSI Reports Third Quarter Results
HERNDON, VA., November 15, 2011 — GTSI Corp. (NASDAQ: GTSI), a systems integration, solutions and services provider to federal, state and local governments, today announced its financial results for the three months and nine months ended September 30, 2011.
Reported Results
For the third quarter of 2011, GTSI reported revenue of $95.8 million compared to $237.4 million for the third quarter of 2010, a revenue decline of 59.6%. Gross margin for the third quarter of 2011 decreased to $17.3 million from $29.8 million, a reduction of 41.9%, from the same period in 2010. Gross Margin percent for the third quarter was 18.1% compared to 12.5% for the same quarter last year. Operating expenses declined $2.9 million or 14.1% to $17.7 million compared to $20.6 million for the third quarter of 2010. The resulting loss from Operations of $0.4 million is a $9.6 million decline from the $9.2 million income from operations reported for the third quarter of 2010. Equity earnings from our investment in Eyak Technology LLC (EyakTek) declined $1.5 million. The decline is primarily a result of recognizing a partial period due to the sale of our EyakTek equity interest to EyakTek on August 19th. As a result of the sale, GTSI recognized a gain on the EyakTek investment of $7.3 million in the third quarter. The net income for the third quarter of 2011 was $4.3 million, compared to net income of $5.9 million for the same period in 2010. Earnings per share declined $0.18 per share or 29% compared to the same quarter last year.
For the nine months ended September 30, 2011, GTSI reported revenue of $247.4 million compared to $474.2 million for the same period in 2010, a decline of 47.8%. Gross margin for the nine months ended September 30, 2011 decreased $16.3 million to $44.5 million, or 26.8% when compared to the first nine months of 2010. Gross Margin percent for this period is 18.0% compared to 12.8% for the same period last year. Operating expenses declined $10.8 million or 16.8% to $53.7 million compared to $64.5 million for the first three quarters of 2010. The loss from Operations increased for the nine months ended September 30, 2011 by $5.5 million compared to the first nine months of 2010. Equity earnings from our EyakTek investment declined $3.0 million or 49.6% to $3.0 million for the first nine months of 2011. After recognizing the $7.3 million gain from the sale of our EyakTek equity interest, our total net income for the nine months ended September 30, 2011 was $139 thousand, compared to net income of $110 thousand for the same period in 2010. Earnings per share for both the nine months ended 2011 and 2010 is $0.01.
GTSI ended the quarter with $56.4 million in cash on hand. The Company had no long-term debt and no borrowings under its credit facility. As of September 30, 2011, GTSI had stockholders’ equity of $96.5 million or $9.99 per outstanding share.
Conference Call
An investor conference call to discuss third quarter results is scheduled for 11:00 a.m. Eastern Time November 15, 2011. Interested parties are invited to participate by calling 800-593-9034 or 334-323-7224, pass code is GTSI. In addition, you may access the webcast on GTSI’s Investor Relations page (www.gtsi.com/ir). Webcast will be available for replay through January 14, 2012. To listen to the live call on the Internet, go to the web site at least 15 minutes early to register, download and install any necessary audio software. A replay will be available following the conclusion of the call until 6:00 p.m. eastern, January 14, 2012. To access the replay, please dial 877-919-4059 or 334-323-7226, pass code 61391114.

 

 


 

About GTSI Corp.
GTSI (NASDAQ: GTSI) is a leading provider of technology solutions and professional services to federal, state and local governments. Founded in 1983, the company has helped meet the unique IT needs of more than 1,700 governmental agencies nationwide. GTSI professionals draw on their deep knowledge, strategic partnerships, customer service and more than 740 industry certifications to guide agencies in selecting the most cost-effective technology available. GTSI has extensive capabilities and past performance in software development, data center, networking, collaboration, security and cloud computing solutions. In addition, GTSI’s advanced engineering, integration, support and financial services — and broad portfolio of contracts — ease the planning, purchasing and deployment of solutions, and facilitates the management of mission-critical IT throughout the lifecycle. Headquartered in Herndon, Va., GTSI has approximately 500 employees. For more information visit the company’s website at www.gtsi.com.
Forward Looking Statements
Except for historical information, all of the statements, expectations, beliefs and assumptions contained in the foregoing are “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve a number of risks and uncertainties. It is possible that the assumptions made by management, including, but not limited to, those relating to sales, margins, operating results and net income, and the effect of new contracts and lender agreements, as well as new vendor relationships may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. In addition to the above factors, other important factors that could cause actual results to differ materially are discussed in the Company’s most recent annual report on Form 10—K and included from time to time in other documents filed by the Company with the Securities and Exchange Commission.
GTSI and GTSI.com are registered trademarks of GTSI Corp. in the U.S. and other countries. All trade names are the property of their respective owners.
GTSI Contact:
Peter Whitfield
Senior Vice President & Chief Financial Officer
703.502.2954
peter.whitfield@gtsi.com
All press releases are available in the News Room on GTSI.com

 

 


 

GTSI Corp. Unaudited Condensed Consolidated Statements of Operations
(In thousands, expect per share data)
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2011     2010     2011     2010  
 
                               
SALES
                               
Product
  $ 80,408     $ 208,797     $ 205,375     $ 418,456  
Service
    13,951       15,907       32,273       38,581  
Financing
    1,423       12,663       9,752       17,191  
 
                       
 
    95,782       237,367       247,400       474,228  
 
                               
COST OF SALES
                               
Product
    69,412       189,092       178,123       378,833  
Service
    8,742       10,968       21,398       25,571  
Financing
    309       7,519       3,415       9,068  
 
                       
 
    78,463       207,579       202,936       413,472  
 
                       
 
                               
GROSS MARGIN
    17,319       29,788       44,464       60,756  
 
                               
SELLING, GENERAL & ADMINISTRATIVE EXPENSES
    17,681       20,592       53,651       64,452  
 
                       
(LOSS) GAIN FROM OPERATIONS
    (362 )     9,196       (9,187 )     (3,696 )
 
                       
 
                               
INTEREST AND OTHER INCOME, NET
                               
Interest and other income
    29       57       93       131  
Equity income from EyakTek
    7,930       2,170       10,317       6,029  
Interest expense
    (147 )     (160 )     (443 )     (516 )
 
                       
Interest and other income, net
    7,812       2,067       9,967       5,644  
 
                       
 
                               
INCOME BEFORE INCOME TAXES
    7,450       11,263       780       1,948  
 
                               
INCOME TAX EXPENSE
    3,185       5,329       641       1,838  
 
                       
 
                               
NET INCOME
  $ 4,265     $ 5,934     $ 139     $ 110  
 
                       
 
                               
EARNINGS PER SHARE
                               
Basic
  $ 0.44     $ 0.62     $ 0.01     $ 0.01  
 
                       
Diluted
  $ 0.44     $ 0.62     $ 0.01     $ 0.01  
 
                       
 
                               
WEIGHTED AVERAGE SHARES OUTSTANDING
                               
Basic
    9,676       9,603       9,655       9,604  
 
                       
Diluted
    9,690       9,629       9,677       9,653  
 
                       

 

 


 

GTSI Corp. Unaudited Condensed Consolidated Balance Sheets
(In thousands)
                 
    September 30,     December 31,  
    2011     2010  
 
               
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 56,350     $ 4,049  
Accounts receivable, net
    102,001       154,891  
Inventory, net
    10,309       13,708  
Deferred costs
    3,657       6,991  
Other current assets
    2,460       2,462  
 
           
Total current assets
    174,777       182,101  
Depreciable assets, net
    5,255       7,452  
Long-term receivables and other assets
    3,962       14,291  
Other intangible assets, net
    4,370        
Goodwill
    7,718        
 
           
TOTAL ASSETS
  $ 196,082     $ 203,844  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 58,472     $ 50,870  
Accounts payable — floor plan
    20,291       35,172  
Accrued liabilities
    14,693       14,887  
Deferred revenue
    3,168       3,661  
 
           
Total current liablilites
    96,624       104,590  
Other liabilities
    2,979       3,044  
 
           
Total liabilities
    99,603       107,634  
Total stockholders’ equity
    96,479       96,210  
 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 196,082     $ 203,844