DALLAS, Aug. 6 /PRNewswire-FirstCall/ -- SOURCECORP(TM) (Nasdaq: SRCP),
one of the nation's leading providers of business process outsourcing
solutions, today reported 2003 second quarter revenue of $101.8 million and
diluted earnings per share of $.35.
Second Quarter Summary
Ed H. Bowman, Jr., President and CEO of SOURCECORP said, "SOURCECORP's
second quarter revenue and earnings per share were within the range of
financial guidance last provided in May.
"The Company closed sales during the second quarter anticipated to produce
total revenue of approximately $35.4 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, one of
which was with a new customer."
Mr. Bowman added, "We continue to execute the business plans we
established for 2003. During the second quarter, we added seasoned national
account sales personnel and made solid progress with our technology
initiatives. We have now deployed 16 of the 23 high-speed scanners in our
service centers to be implemented during 2003. Additionally, our optical
character recognition system roll out is progressing as planned. All of these
initiatives are important components of our efforts to best position the
Company for growth during 2004."
Summary of Financial Highlights
(in $ millions, except for earnings per share data)
Q2 2003 Q2 2002 Change
Revenue $101.8 $105.8 -3.8 %
Operating Income $10.1 $14.0 -27.8 %
Net Income $5.7 $7.5 -24.6 %
Diluted EPS $.35 $.42 -16.7 %
The Company produced cash flow from operations of $29.4 million during the
second quarter of 2003, an increase of approximately 131 percent from the
second quarter of 2002. Also, days sales outstanding during the second
quarter decreased from the first quarter of 2003 by 3 business days to
43 business days, within the Company's expected range. As of June 30, the
Company's debt to total capital ratio was approximately 20.4 percent and the
outstanding balance on the Company's credit facility was reduced to
$76.6 million.
During the second quarter, the Company acquired approximately 304,000
shares at an average cost of $17.57 pursuant to its previously announced stock
repurchase program, which resulted in earnings per share accretion of
approximately two cents during the quarter.
Company Financial Outlook
For 2003, the Company is maintaining its previous earnings per share
guidance provided in May and is tightening its 2003 full year revenue range
due to improved visibility for the second half of the year, particularly with
the expected mix of project versus recurring revenue. The Company's updated
guidance is summarized as follows:
-- Full year, 2003 revenue and earnings per share is anticipated to be
approximately $415 to $425 million and $1.60 to $1.75, respectively.
This guidance includes the expected impact of 1) the Q3 start of two
significant Legal Claims Administration projects delayed from Q2; 2) closing
the sale on a large Legal Claims Administration project expected to start late
Q3 with primary contribution during Q4; and 3) anticipated overall revenue
increases and cost-savings as the Company's expanding investments in, and
results from, sales resources and technology gain traction during the second
half of 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 legal and regulatory changes that could impact
our ability to deliver our services, 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)
Consolidated Statements of Operations
In Thousands (Except Earnings Per Share)
(Unaudited)
Three Months Ended
June 30, March 31,
2003 2003
Actual Actual
Total Revenue $101,770 $109,525
Cost of Services 61,647 64,512
Depreciation 3,467 3,536
Gross Profit 36,656 41,477
SG&A 26,479 26,433
Amortization 88 89
Operating Income 10,089 14,955
Other (income) expense 661 1,324
Income before income taxes 9,428 13,631
Provision for income taxes 3,771 5,452
Net Income $5,657 $8,179
Weighted Avg. Shares
Basic 16,319 17,205
Diluted 16,381 17,226
Earnings Per Share
Basic $0.35 $0.48
Diluted $0.35 $0.47
SOURCECORP(TM)
Consolidated Statements of Operations
In Thousands (Except Earnings Per Share)
(Unaudited)
Three Months Ended
June 30,
2003 2002
Actual Actual
Total Revenue $101,770 $105,787
Cost of Services 61,647 63,332
Depreciation 3,467 3,644
Gross Profit 36,656 38,811
SG&A 26,479 24,754
Amortization 88 89
Operating Income 10,089 13,968
Other (income) expense 661 1,863
Income before income taxes 9,428 12,105
Provision for income taxes 3,771 4,600
Net Income $5,657 $7,505
Weighted Avg. Shares
Basic 16,319 17,304
Diluted 16,381 17,887
Earnings Per Share
Basic $0.35 $0.43
Diluted $0.35 $0.42
SOURCECORP(TM)
Consolidated Statements of Operations
In Thousands (Except Earnings Per Share)
(Unaudited)
Six Months Ended
June 30,
2003 2002
Actual Actual
Total Revenue $211,295 $209,071
Cost of Services 126,159 125,533
Depreciation 7,003 7,094
Gross Profit 78,133 76,444
SG&A 52,912 51,028
Amortization 177 178
Operating Income 25,044 25,238
Other (income) expense 1,985 3,450
Income before income taxes 23,059 21,788
Provision for income taxes 9,223 8,280
Net Income $13,836 $13,508
Weighted Avg. Shares
Basic 16,762 17,300
Diluted 16,804 17,854
Earnings Per Share
Basic $0.83 $0.78
Diluted $0.82 $0.76
SOURCECORP(TM)
CONSOLIDATED BALANCE SHEETS
In Thousands
(Unaudited)
June 30, December 31,
ASSETS 2003 2002
CURRENT ASSETS
Cash $2,722 $3,217
Accounts receivable (net) 71,136 78,834
Deferred tax asset 7,609 9,012
Other current 5,641 6,247
Total current assets 87,108 97,310
Property, plant & equipment (net) 40,128 40,575
Goodwill and other intangibles (net) 325,645 321,340
Other noncurrent 9,596 8,382
Total Assets $462,477 $467,607
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $60,128 $58,029
Current maturities of long-term obligations 189 113
Income taxes payable 6,409 180
Total current liabilities 66,726 58,322
Long-term debt 76,448 89,640
Deferred taxes and other long-term
liabilities 20,548 16,969
Total Liabilities 163,722 164,931
STOCKHOLDERS' EQUITY
Common stock 163 175
Additional paid-in-capital 195,425 206,843
Treasury stock (982) (982)
Deferred compensation (2,859) 0
Other comprehensive loss 0 (329)
Retained earnings 107,008 96,969
Total stockholders' equity 298,755 302,676
Total liabilities and
stockholders' equity $462,477 $467,607
SOURCECORP(TM)
CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands
(Unaudited)
Six Months Ended
June 30,
2003 2002
Net Income $13,836 $13,508
Adjustments to reconcile net income to
cash provided by operating activities
Depreciation and amortization 7,180 7,272
Deferred tax provision 4,023 3,390
Compensation expense on restricted
stock grants 91 0
(Gain)/loss on sale of property, plant
and equipment (344) 125
Changes in working capital 15,454 (819)
Net cash provided by operating activities 40,240 23,476
Net cash used for investing activities (9,193) (23,126)
Net cash used for financing activities (31,542) (3,743)
Net decrease in cash and cash equivalents (495) (3,393)
Cash and cash equivalents, beginning of
period 3,217 7,182
Cash and cash equivalents, end of period $2,722 $3,789
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
|
