
|
|
·
|
Revenue
of $30.5 million, up 12.4%
|
|
|
·
|
Fully
Diluted EPS of $0.05, up 150%
|
|
|
·
|
EBITDA
(1) of $3.2 million or an EBITDA margin of 10.5%, up
29%
|
|
|
·
|
Quarterly
book to bill ratio of 2.1x
|
|
|
·
|
Backlog
up 21% from December 31, 2009
|
|
|
·
|
Total
debt of $19.0 million as of March 31, 2010, down $2.2 million from $21.2
million as of December 31, 2009
|
|
|
·
|
DSO
of 64 days as of March 31, 2010, down from 79 days as of March 31,
2009
|
|
|
·
|
a
$27.5 million, four-year contract with an agency within the Department of
Defense to provide project management support, IT infrastructure
operations and maintenance, information assurance and application software
development and maintenance; and
|
|
|
·
|
a
$21.4 million, five-year contract with the Nuclear Regulatory Commission
(“NRC”) to support NRC’s Program Management Methodology
(“PMM”), the major NRC Program Offices, and to maintain NRC’s Rational
Tools Suite.
|
|
(1)
|
EBITDA
is a non-GAAP measure that is defined as GAAP net income plus other
expense, interest expense, income taxes, and depreciation and
amortization. We have provided EBITDA because we believe it is a
commonly used measure of financial performance in comparable companies and
is provided to help investors evaluate companies on a consistent basis, as
well as to enhance an understanding of our operating results. EBITDA
is not a recognized term under U.S. GAAP and does not purport to be an
alternative to net income as a measure of operating performance or the
cash flows from operating activities as a measure of liquidity.
Please refer to the table at the bottom of the statement of operations in
this release that reconciles GAAP net income to
EBITDA.
|
|
Three Months
Ended March 31,
|
||||||||
|
2010
(unaudited)
|
2009
(unaudited)
|
|||||||
|
Revenue
|
$ | 30,511,983 | $ | 27,156,514 | ||||
|
Operating
costs and expenses
|
||||||||
|
Direct
costs
|
21,415,612 | 18,195,737 | ||||||
|
Selling,
general and administrative expenses
|
6,403,221 | 6,492,515 | ||||||
|
Depreciation
and amortization
|
640,837 | 784,127 | ||||||
|
Total
operating costs and expenses
|
28,459,670 | 25,472,379 | ||||||
|
Operating
income
|
2,052,313 | 1,684,135 | ||||||
|
Other
(expense) income
|
||||||||
|
Interest,
net
|
(821,155 | ) | (774,080 | ) | ||||
|
Other
income
|
500,000 | — | ||||||
|
Income
before income taxes
|
1,731,158 | 910,055 | ||||||
|
Income
tax expense
|
624,590 | 484,466 | ||||||
|
Net
income
|
$ | 1,106,568 | $ | 425,589 | ||||
|
Weighted
average number of shares outstanding
|
||||||||
|
—basic
|
22,536,486 | 22,542,200 | ||||||
|
—diluted
|
22,742,880 | 22,542,200 | ||||||
|
Net
income per share
|
||||||||
|
—basic
|
$ | 0.05 | $ | 0.02 | ||||
|
—diluted
|
$ | 0.05 | $ | 0.02 | ||||
|
Three Months
Ended March 31,
|
||||||||
|
2010
(unaudited)
|
2009
(unaudited)
|
|||||||
|
Net
Income
|
$ | 1,106,568 | $ | 425,589 | ||||
|
Adjustments
|
||||||||
|
Depreciation
and amortization
|
640,837 | 784,127 | ||||||
|
Interest
|
821,155 | 774,080 | ||||||
|
Taxes
|
624,590 | 484,466 | ||||||
|
EBITDA
(1)
|
3,193,150 | 2,468,262 | ||||||
|
March 31,
|
December 31,
|
|||||||
|
2010
|
2009
|
|||||||
|
(unaudited)
|
(audited)
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets
|
||||||||
|
Cash
|
$ | 134,913 | $ | 178,225 | ||||
|
Restricted
cash
|
1,324,648 | 1,324,510 | ||||||
|
Accounts
receivable, net
|
20,447,469 | 22,497,444 | ||||||
|
Prepaid
expenses and other current assets
|
448,674 | 625,231 | ||||||
|
Income
taxes receivable
|
120,739 | 205,339 | ||||||
|
Other
current assets
|
51,171 | 46,057 | ||||||
|
Deferred
income taxes, current
|
2,430,547 | 2,361,611 | ||||||
|
Total
current assets
|
24,958,161 | 27,238,417 | ||||||
|
Property
and equipment, net
|
2,877,940 | 3,011,621 | ||||||
|
Goodwill
|
55,370,011 | 55,370,011 | ||||||
|
Intangible
assets, net
|
5,604,716 | 6,102,798 | ||||||
|
Other
assets
|
146,567 | 146,567 | ||||||
|
Deferred
income taxes
|
1,495,795 | 1,400,260 | ||||||
|
Total
assets
|
$ | 90,453,190 | $ | 93,269,674 | ||||
|
Current
liabilities:
|
||||||||
|
Current
portion of long-term debt
|
$ | 18,995,387 | $ | 21,191,135 | ||||
|
Accounts
payable
|
5,102,145 | 4,753,800 | ||||||
|
Other
accrued expenses and current liabilities
|
4,596,635 | 6,356,896 | ||||||
|
Accrued
salaries and related taxes
|
3,495,647 | 4,541,509 | ||||||
|
Accrued
vacation
|
2,499,145 | 2,259,538 | ||||||
|
Income
taxes payable
|
946,901 | — | ||||||
|
Deferred
revenue
|
813,456 | 1,392,457 | ||||||
|
Deferred
rent – current portion
|
320,498 | 320,498 | ||||||
|
Total
current liabilities
|
36,769,814 | 40,815,833 | ||||||
|
Deferred rent – net of current
portion
|
2,616,000 | 2,658,055 | ||||||
|
Other
long-term liabilities
|
5,794 | 5,795 | ||||||
|
Total
liabilities
|
39,391,608 | 43,479,683 | ||||||
|
Shareholders’
equity:
|
||||||||
|
Preferred
stock $.001 par value, 1,000,000 shares authorized, and no shares issued
and outstanding
|
— | — | ||||||
|
Common
stock $.001 par value, 100,000,000 shares authorized, 31,314,745 and
30,867,304 shares issued, respectively, and 22,416,852 and 22,524,549
shares outstanding, respectively
|
3,162 | 3,124 | ||||||
|
Additional
paid-in capital
|
131,936,469 | 131,702,488 | ||||||
|
Treasury
stock, at cost, 8,897,893 and 8,342,755 shares held,
respectively
|
(31,663,758 | ) | (31,209,118 | ) | ||||
|
Accumulated
deficit
|
(48,956,411 | ) | (50,062,979 | ) | ||||
|
Accumulated
other comprehensive loss (net of tax benefit of $160,386 and $338,606,
respectively)
|
(257,880 | ) | (643,524 | ) | ||||
|
Total
shareholders’ equity
|
51,061,582 | 49,789,991 | ||||||
|
Total
liabilities and shareholders’ equity
|
$ | 90,453,190 | $ | 93,269,674 | ||||
|
Three Months Ended
March 31,
|
||||||||
|
2010
|
2009
|
|||||||
|
(unaudited)
|
(unaudited)
|
|||||||
|
Cash
flows from operating activities
|
||||||||
|
Net
income
|
$ | 1,106,568 | $ | 425,589 | ||||
|
Adjustments
to reconcile net income to net cash from operating
activities:
|
||||||||
|
Depreciation
and amortization
|
640,837 | 781,688 | ||||||
|
Non-cash
other income from claim settlement
|
(495,000 | ) | — | |||||
|
Non-cash
interest expense SWAP agreement
|
328,766 | |||||||
|
Stock-based
compensation
|
162,492 | 105,219 | ||||||
|
Deferred
income taxes
|
(405,254 | ) | 274,106 | |||||
|
Deferred
rent
|
(42,055 | ) | (45,334 | ) | ||||
|
Gain
on disposal of equipment
|
(5,000 | ) | — | |||||
|
Provision
for bad debt
|
495,422 | 123,871 | ||||||
|
Changes
in assets and liabilities, net of adjustments related to other
comprehensive loss:
|
||||||||
|
Accounts
receivable
|
1,554,554 | 5,641,195 | ||||||
|
Prepaid
expenses and other current assets
|
176,557 | (94,646 | ) | |||||
|
Restricted
cash
|
(138 | ) | (3,831 | ) | ||||
|
Other
assets
|
(5,114 | ) | 48,340 | |||||
|
Accounts
payable
|
365,864 | 66,803 | ||||||
|
Other
accrued expenses and accrued liabilities
|
(1,462,500 | ) | (2,086,536 | ) | ||||
|
Accrued
salaries and related taxes
|
(1,045,862 | ) | (89,936 | ) | ||||
|
Accrued
vacation
|
239,608 | 231,248 | ||||||
|
Accrued
interest
|
(17,520 | ) | 13,616 | |||||
|
Income
taxes payable and receivable
|
1,031,400 | (749,051 | ) | |||||
|
Other
current liabilities
|
(579,001 | ) | 573,737 | |||||
|
Net
cash provided by operating activities
|
2,044,624 | 5,216,078 | ||||||
|
Cash
flows from investing activities
|
||||||||
|
Purchase
of property and equipment
|
(9,074 | ) | (80,400 | ) | ||||
|
Proceeds
from disposals of equipment
|
5,000 | — | ||||||
|
Net
cash used in investing activities
|
(4,074 | ) | (80,400 | ) | ||||
|
Cash
flows from financing activities
|
||||||||
|
Borrowings
on line of credit
|
18,916,849 | 14,027,500 | ||||||
|
Payments
on line of credit
|
(19,539,208 | ) | (18,877,448 | ) | ||||
|
Payments
on notes payable
|
(1,078,390 | ) | (645,813 | ) | ||||
|
Payments
on capital leases
|
— | (20,992 | ) | |||||
|
Proceeds
from stock issued pursuant to Employee Stock Purchase Plan
|
71,527 | 59,966 | ||||||
|
Payments
to repurchase treasury stock
|
(454,640 | ) | — | |||||
|
Net
cash used in financing activities
|
(2,083,862 | ) | (5,456,787 | ) | ||||
|
Net
decrease in cash
|
(43,312 | ) | (321,109 | ) | ||||
|
Cash,
beginning of period
|
178,225 | 364,822 | ||||||
|
Cash,
end of period
|
$ | 134,913 | $ | 43,713 | ||||
|
Three Months Ended
March 31,
|
||||||||
|
2010
|
2009
|
|||||||
|
(unaudited)
|
(unaudited)
|
|||||||
|
Supplemental disclosures:
|
||||||||
|
Cash
paid or received during the period for:
|
||||||||
|
Income
taxes paid
|
$ | — | $ | 962,600 | ||||
|
Income
tax refunds
|
1,128 | 3,189 | ||||||
|
Interest
paid
|
518,127 | 823,657 | ||||||
|
Interest
received
|
8,080 | 7,980 | ||||||
|
Non-cash
investing and financing activities and adjustment to other comprehensive
loss:
|
||||||||
|
Unrealized
other comprehensive income (loss) on interest rate swap, net of
tax
|
(183,302 | ) | (71,578 | ) | ||||