Reports Fourth Quarter Revenue of $19.4 Million, Net Income of $3.7 Million
and EPS of $0.17
NEWPORT BEACH, Calif., Jan. 28 /PRNewswire-FirstCall/ -- SM&A
(Nasdaq: WINS) today announced revenues for the fourth quarter of $19.4
million, a 33% increase over the $14.5 million reported for the corresponding
period of 2002. Net income for the fourth quarter was $3.7 million or $0.17
per diluted share, an increase of 60% over the $2.3 million or $0.11 per
diluted share reported for the corresponding period of 2002.
Full year revenues were $75.6 million, up 37% over the $55.1 million
reported for 2002. Net income from continuing operations for the year was
$13.3 million, up 104% over the $6.5 million posted for 2002. Diluted
earnings per share from continuing operations were $0.62, an increase of 94%
over last year's $0.32.
Highlights
* Cash and cash equivalents increased 47% in the quarter to $17.7
million.
* Gross margin for the quarter and year was 47% and 45%, respectively.
* Addition of eight new account executives during the year for a total
of 13 at year-end.
* Shareholders' equity increased 25% in the quarter and 191%
year-over-year to $24.4 million.
* Employee headcount totaled 315 at year-end.
* Average deployed associates headcount for the quarter was 182.
Commenting on the results, Steve Myers, chairman and CEO said, "Today, we
are very pleased to be reporting the best quarter and the best year in the
company's history. At SM&A, the people are the drivers and these outstanding
results reflect the exceptional contributions of our employees. They are to
be congratulated for effectively integrating a new business model and
consistently defining and executing best practice solutions for our clients."
"We achieved 33% revenue growth for the quarter and captured 37% revenue
growth for the year, exceeding our previously stated 35% revenue growth
target. Our operating income in the fourth quarter increased 37% over the
third quarter due to continued strong demand for our services, and despite
almost three weeks of holiday furloughs. Operating income for the fourth
quarter year-over-year grew 81%. In the fourth quarter, we recorded a
year-end tax adjustment of $548,000, or $0.02 per diluted share. Without the
tax adjustment, the company earned $0.15 per diluted share in the fourth
quarter. The effective tax rate going forward is expected to be 41%. Sector
trends remain strong and with our scalable cost structure, we are well
positioned for 2004," said CFO Cathy Wood.
Outlook
"We currently expect revenue growth in the first quarter to be flat to
slightly up over the fourth quarter of 2003. The less than anticipated first
quarter growth is attributable to two high-profile programs being deferred
from the first quarter to later in the year. One of the programs involves the
President's new space initiative, which has resulted in NASA program
restructuring. We anticipate that deployments will increase throughout the
year, and we are reiterating our revenue growth forecast of about 20% for the
year," added Wood.
Conference Call -- Wednesday, January 28, 2004, 1:05 p.m., PST
Participants dial (800) 677-1840 approximately 10 minutes before the
scheduled start of the call. The call will also be accessible live at the
homepage of http://www.smawins.com by clicking on the Webcast link. Following its
completion, an audio replay may be accessed for one week by dialing (800) 642-
1687 or (706) 645-9291, access code 4951643.
About SM&A
SM&A is the world's leading provider of business capture services, and a
leading provider of high-value program support services. SM&A's more than 300
employees and consultants provide program management, systems engineering, and
expert support to major industrial customers in the defense, homeland
security, aerospace, information technology, and architect and engineering
sectors. Since 1982, SM&A has managed in excess of 730 proposals worth more
than $263 billion for its clients, and has an 85% win rate on awarded
contracts. SM&A also provides systems engineering, program planning and other
high-value technical support services to such high priority national programs
as the Joint Strike Fighter program, the U.S. Army's transformational systems,
and America's missile defense efforts. Additional information about SM&A is
available on the Internet at http://www.SMAWINS.com .
Management believes certain statements in this press release may
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Preparation of these
forward-looking statements requires the use of estimates of future revenues,
expenses, activity levels, economic, and market conditions, many of which are
outside the company's control. These statements which may include, but are
not limited to, revenue, gross margin, market size, pipeline, backlog,
seasonal trends, and outlook for business performance, are made on the basis
of management's views and assumptions regarding future events and business
performance as of the time the statements are made, and are subject to
uncertainty and changes in circumstances. Actual results may differ
materially from those expressed or implied. Investors are advised to read the
company's annual report on Form 10-K and quarterly reports on Form 10-Q filed
with the Securities and Exchange Commission, particularly the Management
Discussion and Analysis and Risk Factors for a more comprehensive discussion
of these and other risks and uncertainties which could impact actual results.
The company expressly does not undertake a duty to update forward-looking
statements.
For further information, please contact Donna Smith, Director, Investor
Relations, Corporate Communications of SM&A, +1-949-975-1550,
donna.smith@smawins.com .
SM&A
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December 31
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $17,712 $5,956
Accounts receivable, net of
allowances of $387 and $439 12,178 9,961
Prepaid expenses and other current assets 310 425
Deferred income taxes 752 1,277
Total current assets 30,952 17,619
Fixed assets, net 723 578
Other assets 128 111
$31,803 $18,308
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $683 $1,239
Accrued compensation and related benefits 3,637 2,832
Income taxes payable 1,440 2,989
Net liabilities of discontinued operations 1,359 2,453
Total current liabilities 7,119 9,513
Deferred income taxes 45 73
Other liabilities 206 334
Total liabilities 7,370 9,920
Commitments and contingencies
Shareholders' equity:
Preferred stock: Authorized 10,000,000 shares.
None issued and outstanding -- --
Common stock, no par value:
Authorized 50,000,000 shares. Issued and
outstanding 20,336,167 and 19,700,692,
respectively 52,215 49,438
Accumulated deficit (27,782) (41,050)
Total shareholders' equity 24,433 8,388
$31,803 $18,308
SM&A
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Years Ended December 31
2003 2002 2001
Revenue $75,593 $55,057 $46,407
Cost of revenue 41,533 32,059 27,047
Gross margin 34,060 22,998 19,360
Selling, general and
administrative expenses 14,329 12,369 12,013
Operating income 19,731 10,629 7,347
Other income (expense):
Interest income (expense), net 73 (865) (1,909)
Unrealized gain (loss) on
interest rate swap -- 6 (673)
Other income (expense), net 73 (859) (2,582)
Income from continuing operations
before income taxes 19,804 9,770 4,765
Income tax expense 6,536 3,252 1,916
Income from continuing operations 13,268 6,518 2,849
Discontinued operations:
Loss from operations of
discontinued businesses,
net of income taxes -- -- (7,955)
Loss from disposal of
discontinued businesses,
net of income taxes -- -- (13,942)
Loss from discontinued operations -- -- (21,897)
Extraordinary loss from early
extinguishment of debt,
net of income taxes -- (2,499) --
Cumulative effect of adoption of
FASB Statement No. 133,
net of income taxes -- -- (668)
Net income (loss) $13,268 $4,019 $(19,716)
Net Income (loss) per share - Basic
Continuing operations $0.66 $0.33 $0.15
Discontinued operations $-- $-- $(1.15)
Extraordinary loss from
early extinguishment of debt $-- $(0.13) $--
Cumulative effect of adoption
of FASB Statement No. 133 $-- $-- $(0.04)
Net income (loss) $0.66 $0.21 $(1.04)
Net Income (loss) per share - Diluted
Continuing operations $0.62 $0.32 $0.15
Discontinued operations $-- $-- $(1.14)
Extraordinary loss from
early extinguishment of debt $-- $(0.12) $--
Cumulative effect of adoption
of FASB Statement No. 133 $-- $-- $(0.04)
Net income (loss) $0.62 $0.20 $(1.03)
Shares used in calculating
net income (loss) per share:
Basic 19,991 19,535 19,045
Diluted 21,428 20,452 19,219
SOURCE SM&A
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Related links:
http://smawins.com
CONTACT:
Donna Smith, Director, Investor Relations,
Corporate Communications of SM&A, +1-949-975-1550,
donna.smith@smawins.com
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