DALLAS, May 7 /PRNewswire-FirstCall/ -- SOURCECORP(TM) (Nasdaq: SRCP), one
of the nation's leading providers of business process outsourcing solutions,
today reported 2003 first quarter revenue of $109.5 million and diluted
earnings per share of $.47. First quarter revenue and earnings per share were
at the top end of financial guidance provided by the Company in February.
First Quarter Summary
Ed H. Bowman, Jr., President and CEO of SOURCECORP said, "SOURCECORP
produced excellent first quarter business and financial results, especially
given the continuing challenging economy. Overall, gross and operating
profits and margins, and net income increased on both a sequential and year-
over-year basis when compared with the fourth and first quarters of 2002,
respectively. Also, diluted earnings per share increased 23.7 percent
sequentially and 38.2 percent year-over-year.
"Compared with the first quarter of 2002, revenue increased by
approximately six percent, reflecting increases from Legal Claims
Administration and Legal Consulting Services. The higher margins associated
with these project revenues and the cost savings initiatives that we completed
during 2002 contributed significantly to the year-over-year increase in first
quarter diluted earnings per share."
The Company also closed sales during the quarter anticipated to produce
total revenue of approximately $34.6 million, including amounts that the
Company expects to recognize in future years. These new sales included five
large sales, each for more than $1 million in total expected revenue, two of
which were with new customers. Mr. Bowman added, "During the quarter, we
recruited our new Senior Vice President of Sales and Marketing for Information
Management, Ivan Boyd. Bringing Ivan on board achieved a key goal for us
early in the year as part of our focus on expanding national sales in
Information Management; and, we are aggressively pursuing new opportunities to
increase our new business results later this year."
Summary of Financial Highlights
(in $ millions, except for earnings per share data)
Q1 2003 Q1 2002 Change
Revenue $109.5 $103.3 6%
Operating Income $15.0 $11.3 32.7%
Net Income $8.2 $6.0 36.2%
Diluted EPS $.47 $.34 38.2%
The Company produced cash flow from operations of $10.9 million for the
first quarter of 2003, an increase of approximately 1.3 percent from the first
quarter of 2002. Also, days sales outstanding during the first quarter
decreased from the first quarter of 2002 by 3.2 business days to 46 business
days, within the Company's expected range for the quarter. As of
March 31, the Company's debt to total capital ratio was approximately
24 percent and the outstanding balance on the Company's credit facility was
$94.4 million.
During the first quarter, the Company acquired 894,133 shares at an
average cost of $14.26 pursuant to its previously announced stock repurchase
program, which resulted in earnings per share accretion of approximately one-
half cent during the quarter.
Company Financial Outlook
For the second quarter of 2003, the Company is maintaining its previous
guidance provided in February for revenue and is updating its guidance for
earnings per share to reflect a more narrow range of expected results due to
improved visibility for the quarter. For the full year, the Company is
updating its previous revenue guidance to reduce the top end of the range by
$10 million due to improved visibility with the Company's expected revenue mix
for the year and is maintaining its previous earnings per share guidance.
This guidance is summarized as follows:
-- Second quarter, 2003 revenue and earnings per share is anticipated to
be approximately $100 to $105 million and $.35 to $.39, respectively,
and
-- Full year, 2003 revenue and earnings per share is anticipated to be
approximately $425 to $440 million and $1.60 to $1.75, respectively.
The second quarter guidance includes, in particular, the expected impact
of the completion of the New York HRA work, which has occurred, Statement
Solutions returning to more normalized run-rates following typical first
quarter seasonal strength and Legal Consulting completing specific projects
that were accelerated during the first quarter of 2003.
The Company's guidance also includes the expected impact of its expanding
investments in, and results from, sales resources and technology discussed in
both its 2002 Annual Report and during the Company's 2002 year-end conference
call in February and the projected 40% effective tax rate for the year.
ABOUT SOURCECORP(TM)
SOURCECORP, Incorporated provides business process outsourcing solutions
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 has offices in 24 states and operates in approximately 40 states,
Washington D.C., Mexico and both domestically and far offshore through
alliances.
SOURCECORP is a component of both the S&P SmallCap 600 Index and the
Russell 2000 Index. The Company has been cited among the Top 100 Hot Growth
Companies by BusinessWeek magazine. SOURCECORP has also been recognized twice
by Forbes magazine as one of the 200 Best Small Companies, based on return
equity, sales growth, and EPS growth, and by FORTUNE magazine as one of
America's 100 Fastest Growing Public Companies. For more information
about SOURCECORP's solutions, including case-study examples, visit
the SOURCECORP website at http://www.srcp.com .
The statements in this press release, which 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,
any financial estimates and projections included in this press release and the
Company disclaims any intention or obligation to update or revise such
estimates or forecasts, except as required by law. The aforementioned risks
and uncertainties include, but are not limited to, the risks of integrating
our operating companies, of managing our growth, of the timing and magnitude
of technological advances, of the occurrences of future events that could
diminish our existing customers' needs for our services, of a change in the
degree to which companies continue to 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.
SOURCECORP(TM)
Summary of Financial Data
In Thousands (Except Earnings Per Share)
(Unaudited)
Three Months Ended
March 31,
2003 2002
Actual Actual
Total Revenue $ 109,525 $103,284
Cost of Services 64,512 62,201
Depreciation 3,536 3,450
Gross Profit 41,477 37,633
SG&A 26,433 26,274
Amortization 89 89
Operating Income 14,955 11,270
Other (income) expense 1,324 1,587
Income before income taxes 13,631 9,683
Provision for income taxes 5,452 3,680
Net Income $8,179 $6,003
Weighted Avg. Shares
Basic 17,205 17,296
Diluted 17,226 17,817
Earnings Per Share
Basic $0.48 $ 0.35
Diluted $0.47 $ 0.34
SOURCECORP(TM)
Summary of Financial Data
In Thousands (Except Earnings Per Share)
(Unaudited)
Three Months Ended
March 31, December 31,
2003 2002
Actual Actual
Total Revenue $ 109,525 $ 112,844
Cost of Services 64,512 69,183
Depreciation 3,536 3,612
Gross Profit 41,477 40,049
SG&A 26,433 27,669
Amortization 89 89
Operating Income 14,955 12,291
Other (income) expense 1,324 1,547
Income before income taxes 13,631 10,744
Provision for income taxes 5,452 4,083
Net Income $8,179 $6,661
Weighted Avg. Shares
Basic 17,205 17,378
Diluted 17,226 17,373
Earnings Per Share
Basic $0.48 $ 0.38
Diluted $0.47 $ 0.38
SOURCECORP(TM)
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
March 31, December 31,
ASSETS 2003 2002
CURRENT ASSETS
Cash $2,542 $3,217
Accounts receivable (net) 84,074 78,834
Deferred tax asset 8,384 9,012
Other current 6,918 6,247
Total current assets 101,918 97,310
Property, plant & equipment (net) 40,019 40,575
Goodwill and other intangibles (net) 325,822 321,340
Other noncurrent 9,198 8,382
Total Assets $476,957 $467,607
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $59,213 $58,029
Current maturities of long-term obligations 189 113
Income taxes payable 6,144 180
Total current liabilities 65,546 58,322
Long-term debt 94,256 89,640
Deferred taxes and other long-term
liabilities 18,815 16,969
Total Liabilities 178,617 164,931
STOCKHOLDERS' EQUITY
Common stock 166 175
Additional paid-in-capital 196,090 206,843
Treasury stock (982) (982)
Other Comprehensive Income 0 (329)
Retained earnings 103,066 96,969
Total stockholders' equity 298,340 302,676
Total liabilities and stockholders'
equity $476,957 $467,607
SOURCECORP(TM)
CONSOLIDATED STATEMENT OF CASH FLOWS
In Thousands
(Unaudited)
Three Months Ended
March 31,
2003 2002
Net Income $8,179 $6,003
Adjustments to reconcile net income to
cash provided by operating activities
Depreciation and amortization 3,625 3,539
Deferred tax provision 1,581 2,040
Changes in working capital (2,503) (841)
Net cash provided by operating activities 10,882 10,741
Net cash used for investing activities (3,384) (14,095)
Net cash used for financing activities (8,173) (3,387)
Net decrease in cash and cash equivalents (675) (6,741)
Cash and cash equivalents, beginning of
period 3,217 7,182
Cash and cash equivalents, end of period $2,542 $441
SOURCE SOURCECORP
 back to top
Related links:
http://www.srcp.com
Company News On-Call:
http://www.prnewswire.com/comp/117986.html
CONTACT:
Barry Edwards, EVP & Chief Financial Officer,
+1-214-740-6690, or Lon Baugh, Director, Investor Relations,
+1-214-740-6683, both of SOURCECORP
|
