DALLAS, Oct. 27 /PRNewswire-FirstCall/ -- SOURCECORP, Incorporated
(Nasdaq: SRCP) today announced that it will not be releasing earnings for the
period ended September 30, 2004 on schedule due to the previously announced
investigation at one of its operating subsidiaries. In lieu of that earnings
release, and the conference call that typically accompanies the earnings
release to update investors on the Company and its business, the Company is
issuing this press release.
Financial Update and Guidance
The Company is hereby withdrawing its prior guidance on full-year 2004
revenues, earnings and operating cash flow as a result of the uncertainties
connected with the current investigation and any adjustments that may result
from that investigation. However, the Company is providing guidance for the
second half of 2004 relating to its continuing operations. The following
guidance specifically includes a reduction of $.06 per share related to the
Company's estimate of the cost of the investigation during such period, but
specifically excludes other adjustments that might result directly, or
indirectly, from such investigation.
For the period July 1, 2004 through December 31, 2004, the Company expects
revenue from continuing operations to approximate $190 to $195 million and
related earnings per share from continuing operations to approximate $.50 to
$.58. Estimated operating cash flow for the same period is expected to
approximate $20 million to $25 million. In addition, the Company expects to
incur an additional $.02 to $.04 loss per share from discontinued operations
during the same period in connection with the Company's previously reported
divestiture program.
New Business Wins
New business wins during the quarter ended September 30, 2004 remained
strong and again, for the third straight quarter, exceeded $50 million of
total contract value closed ("contract value closed" includes life of contract
revenue expected under new contracts with new customers or existing customers
and under contract renewals). Third quarter new business wins reflect a
significant increase over both 2002 and 2003 average quarterly new business
wins of approximately $30 million per quarter, and are consistent with new
business wins for 2004's previously reported quarters. Management expects
2004 to be a record year for new business wins, positioning the company with a
strong backlog of work for future years.
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 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 uncertainty of completing our investigation in a
timely manner and the actual costs and results of such 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
Company News On-Call:
http://www.prnewswire.com/comp/117986.html
CONTACT:
Barry Edwards, EVP & Chief Financial Officer
of SOURCECORP, +1-214-740-6690
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