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Analysts International Corporation Reports Fourth Quarter and Fiscal Year 2011 Financial Results
 MINNEAPOLIS, MN -- (Marketwire) -- 02/23/12 -- Analysts International Corporation (AIC) (NASDAQ: ANLY)
Analysts International Corporation (AIC) (NASDAQ: ANLY), an information technology services company, today announced financial results for the fourth quarter and fiscal year 2011 which ended on December 31, 2011. AIC reported fourth quarter revenue of $27.1 million as compared to 2010 fourth quarter revenue of $25.3 million. AIC reported a 2011 fourth quarter net income of $1.3 million, or $0.25 per share, as compared to a 2010 fourth quarter net income of $0.9 million, or $0.19 per share. For fiscal year 2011, AIC reported revenue of $109.1 million compared to $106.7 million in fiscal year 2010. The net income for fiscal 2011 was $3.3 million, or $0.66 per share, compared to a net loss of $0.5 million, or $0.10 per share, in the prior year. The fiscal 2011 net income included restructuring charges related to severance and office closures of $0.8 million, or $0.15 per share. Excluding these charges, the Company's net income was $4.1 million in fiscal 2011, or $0.81 per share. The fiscal 2010 net loss included a net reversal of certain restructuring obligations previously recorded of $0.3 million, or $0.06 per share. Excluding these charges, the Company's net loss in fiscal 2010 was $0.8 million, or $0.16 per share. "2011 marked a significant turning point for AIC," said Brittany McKinney, President and CEO. "We achieved annual profitability, stabilized revenues and made the investments necessary to drive future growth. "Our market opportunity remains strong with solid demand for IT services," added McKinney. "We believe AIC is ideally positioned to capitalize on that opportunity and will continue to invest in positioning the Company as a leader in the industry." 2011 Fourth Quarter and Fiscal Year Review In the fourth quarter of 2011, gross margins were $6.7 million, or 24.8% of revenue, as compared to $6.3 million, or 24.8% of revenue in the fourth quarter of 2010. Gross margins were $26.4 million, or 24.2% of revenue, for the fiscal year 2011, compared to $23.8 million, or 22.3% of revenue, for fiscal year 2010. The increase in gross margins as a percent of revenue primarily reflects the impact of implementing our strategy of evolving our mix of business and a decrease in our benefit costs. Selling, general and other administrative expenses represented 20.1% of revenue for the fourth quarter of 2011, as compared to 21.1% for the fourth quarter of 2010, and 20.4% for fiscal year 2011, as compared to 23.0% for fiscal year 2010. The decrease in our SG&A expense is primarily the result of lower benefit costs and previously implemented general expense reductions. We used cash from operations of $0.1 million in the fourth quarter of 2011 compared to $0.3 million in the fourth quarter of 2010. For fiscal year 2011, we generated cash from operations of $2.4 million compared to $0.6 million for fiscal year 2010. As of December 31, 2011, we had a cash balance of $5.1 million and no borrowings from our $15 million credit facility. Amended Credit Facility Fourth Quarter and Fiscal Year 2011 Conference Call About Analysts International Corporation Cautionary Statement for the Purpose of Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements made in this press release (or during the conference call referred to herein) by the Company, its President and CEO Brittany McKinney or its CFO William Wolff, regarding, for instance: Current expectations as to future financial performance and the Company's ability to execute against its strategic plan, increase revenues, maintain profitability, achieve anticipated gross profit margin rates, build cash, control costs and return value to its shareholders, are forward-looking statements. These forward-looking statements are based on current information, which we have assessed, which by its nature is dynamic and subject to rapid and even abrupt changes. As such, results may differ materially in response to a change in this information. Forward-looking statements include statements expressing the intent, belief or current expectations of AIC and members of our management team and involve certain risks and uncertainties, including (i) the risk that management may not fully or successfully implement its business plan or maintain profitability in the future; (ii) the risk that AIC will not be able to realize the benefits of its investments or exploit other opportunities of the business in a timely manner or on favorable terms; (iii) prevailing market conditions in the IT services industry, including intense competition for billable technical personnel at competitive rates, strong pricing pressures from many of our largest clients and difficulty in identifying, attracting and retaining qualified billable technical personnel; (iv) potentially incorrect assumptions by management with respect to the financial effect of prior cost reduction initiatives and current strategic decisions; and (v) other economic, business, market, financial, competitive and/or regulatory factors affecting AIC's business generally, including those set forth in AIC's filings with the SEC. You are cautioned not to place undue reliance on these or any forward-looking statements, which speak only as of the date of this press release and conference call. Such forward-looking statements should be read in conjunction with the Company's filings with the SEC. AIC assumes no responsibility to update the forward-looking statements contained in this release.
Analysts International Corporation
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
------------------- -------------------
(In thousands except per share Dec. 31, Jan. 1, Dec. 31, Jan. 1,
amounts) 2011 2011 2011 2011
--------- --------- --------- ---------
Revenues $ 27,095 $ 25,341 $ 109,118 $ 106,688
Cost of revenues 20,385 19,055 82,734 82,911
--------- --------- --------- ---------
Gross profit 6,710 6,286 26,384 23,777
Selling, administrative and other
operating costs 5,434 5,345 22,279 24,554
Restructuring costs and other
severance related costs - - 769 (300)
--------- --------- --------- ---------
Total operating expenses 5,434 5,345 23,048 24,254
Operating income (loss) 1,276 941 3,336 (477)
Non-operating income - - - 14
Interest expense - (2) - (13)
--------- --------- --------- ---------
Income (loss) before income taxes 1,276 939 3,336 (476)
Income tax expense (benefit) 15 (1) 42 4
--------- --------- --------- ---------
Net income (loss) $ 1,261 $ 940 $ 3,294 $ (480)
========= ========= ========= =========
Per common share:
Basic income (loss) $ 0.25 $ 0.19 $ 0.66 $ (0.10)
Diluted income (loss) $ 0.25 $ 0.19 $ 0.66 $ (0.10)
Weighted-average shares
outstanding:
Basic 5,023 4,986 5,012 4,986
Diluted 5,054 4,987 5,027 4,986
Analysts International Corporation
Condensed Consolidated Balance Sheets
December 31, January 1,
(In thousands) 2011 2011
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 5,135 $ 4,328
Accounts receivable, less allowance for doubtful
accounts 18,016 17,425
Other current assets 489 643
------------ ------------
Total current assets 23,640 22,396
Property and equipment, net 2,095 784
Other assets, net 457 432
------------ ------------
Total assets $ 26,192 $ 23,612
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,847 $ 4,261
Salaries and benefits 2,078 2,189
Deferred revenue 285 359
Deferred compensation 136 181
Restructuring accrual 442 339
Other current liabilities 664 694
------------ ------------
Total current liabilities 7,452 8,023
Non-current liabilities:
Deferred compensation 379 901
Restructuring accrual 28 167
Other long-term liabilities - 52
Shareholders' equity 18,333 14,469
------------ ------------
Total liabilities and shareholders' equity $ 26,192 $ 23,612
============ ============
Analysts International Corporation
Reconciliation of non-GAAP Financial Measures
Three Months Ended Twelve Months Ended
----------------------- -----------------------
December 31, January 1, December 31, January 1,
(In thousands) 2011 2011 2011 2011
------------ ---------- ------------ ----------
Net income (loss) as
reported $ 1,261 $ 940 $ 3,294 $ (480)
Plus:
Restructuring costs and
other severance related
costs - - 769 (300)
Loss on asset sales - - - 48
------------ ---------- ------------ ----------
Income (loss) before other
reconciling items 1,261 940 4,063 (732)
Stock based compensation
expense 112 34 531 1
Depreciation 168 183 632 860
Net interest and non-
operating expense
(income) - 2 - (1)
Income tax expense
(benefit) 15 (1) 42 4
------------ ---------- ------------ ----------
Adjusted EBITDA $ 1,556 $ 1,158 $ 5,268 $ 132
============ ========== ============ ==========
* Non-GAAP Financial Information In evaluating the Company's business, the Company's management considers and uses Adjusted EBITDA as a supplemental measure of operating performance. Adjusted EBITDA refers to a financial measure that the Company defines as net income (loss) excluding interest, taxes, depreciation, amortization, share-based compensation, special charges and other gains and losses that are not related to the Company's operations. This measure is an essential component of the Company's internal planning process because it facilitates period-to-period comparisons of the Company's operating performance by eliminating potential differences in net income (loss) caused by the existence and timing of certain non-cash items, special charges and other gains and losses. This measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The non-GAAP financial measure included in this press release has been reconciled to the nearest GAAP measure. Add to Digg Bookmark with del.icio.us Add to Newsvine Media Contact: |
