DALLAS, March 15 /PRNewswire-FirstCall/ -- SOURCECORP, Incorporated
(Nasdaq: SRCPE) today announced that it is providing an update on its Nasdaq
listing exception and an update on its current Credit Facility Waiver.
Nasdaq
On February 21, 2005, the Company announced that the Nasdaq Listing
Qualification Panel had granted the Company a listing requirements exception
through March 16, 2005, subject to certain conditions. One of those
conditions contemplated that the Company would file its third quarter 2004
Quarterly Report on Form 10-Q, certain prior period financial information, and
file its 2004 Annual Report on Form 10-K by March 16, 2005, which the Company
believes would be the last filing to complete its restatement. The Company
believes that both the Company and its independent auditors are substantially
complete with the restatement and year end financial reporting work; however,
additional time is needed to complete the respective reviews and audit
processes.
As such, the Company has requested a further modification to its Nasdaq
exception to contemplate the filing of its third quarter 2004 Quarterly Report
on Form 10-Q, and certain unaudited prior period financial information, by
March 23, 2005, and the filing of its 2004 Annual Report on Form 10-K by
March 31, 2005. The Company also intends to obtain an automatic filing
extension from the Securities and Exchange Commission for its 2004 Annual
Report on Form 10-K by filing a Form 12b-25. Such an automatic extension
would extend the normal Form 10-K filing date to March 31, 2005 (though the
Nasdaq is not required to factor in such extension for its exception
purposes).
If the Nasdaq listing exception modification request is not granted, the
Company's Common Stock would be delisted from trading on the Nasdaq Stock
Market. The Company cannot predict with certainty whether the Panel will
grant such modified exception or whether the requirement of such modified
exception will be met.
Credit Facility Waiver
As reported on Current Report on Form 8-K dated November 12, 2004, the
Company entered into a waiver agreement (the "Waiver") with respect to its
Credit Agreement pursuant to which the lenders agreed, among other things, to
waive any default under the Credit Agreement that resulted from certain
matters described in the Company's Current Report dated October 27, 2004,
potential non-compliance with a designated fixed charge coverage ratio, and
the Company's failure to timely deliver to its Administrative Agent under the
Company's Credit Agreement its Quarterly Report on Form 10-Q for the third
quarter of 2004. As the Waiver is to expire on March 15, 2005, the Company
has obtained an extension and modification of the Waiver, which contemplates
among other things the extension of the waiver through March 23, 2005 as well
as a temporary waiver of certain potential noncompliance with the Company's
leverage ratio covenant for fiscal quarters ended on or prior to December 31,
2004.
The Company is also in discussions with its lenders to secure a Waiver and
Amendment to its Credit Agreement to, among other things, make certain
portions of the Waiver permanent, amend certain definitions and cure certain
potential covenant defaults resulting from the impact of the Company's
Restatement.
About SOURCECORP(R)
SOURCECORP, Incorporated provides business process outsourcing solutions
and specialized high value consulting services to clients throughout the
U.S. SOURCECORP focuses on business processes in information-intensive
industries including healthcare, legal, financial services, government and
transportation & logistics. Headquartered in Dallas, the Company serves
clients throughout the United States through a network of locations in the
U.S., Mexico and India. SOURCECORP is a component of both the S&P SmallCap
600 Index and the Russell 2000 Index.
For more information about SOURCECORP's solutions visit the SOURCECORP
website at http://www.srcp.com . The statements in this press release that
are not historical fact are forward-looking statements that involve risks and
uncertainties, which could cause actual results to differ materially from such
forward-looking statements. These forward-looking statements include, but are
not limited to, the statements relating to the anticipated impact of
adjustments to our restated financial statements and our ongoing SEC
investigation, any financial estimates, projections, and estimates of future
contract values included in this press release. The aforementioned risks and
uncertainties include, without limitation, the actual final costs of our
internal investigation, the Company's ongoing SEC investigation, remediation
costs relating to our investigation, the potential customer impact of the
results of our investigation, the effect of our investigation and financial
statement restatement on the trading price of our stock, the risks of
integrating our operating companies, of the timing and magnitude of
technological advances, of the occurrences of a diminution in our existing
customers' needs for our services, of a change in the amount companies
outsource business processes, of the impact to margins resulting from a change
in revenue mix as well as the risks detailed in SOURCECORP's filings with the
Securities and Exchange Commission, including without limitation, those
detailed under the heading "Risk Factors" in the Company's most recent annual
report on Form 10-K. SOURCECORP disclaims any intention or obligation to
revise any forward-looking statements, including financial estimates, whether
as a result of new information, future events, or otherwise, except as
required by law.
SOURCE SOURCECORP
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Related links:
http://www.srcp.com
CONTACT:
Barry Edwards, EVP & Chief Financial Officer
of SOURCECORP, +1-214-740-6690
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